3.9 - Targeting Flashcards
What is Market Targeting?
Deciding which segment a business wants to operate in
What are the influences of targeting?
Sufficient demand and profit to justify the investment - size of segments
Ability to be competitive and gain sales - Does the requirement of segment match the skills of the business?
What can businesses do by selecting target segments?
Focus on the needs and wants of the customers in these segments
Hopefully meet their needs more precisely and effectively
Should increase competitiveness and profits
What is Niche Market?
When business identify and satisfy the demands of small segments of a larger market
Give an example of a Niche Market
Clothes retailer - tall people
What are the advantages of a Niche Market?
Less competition Clear Focus Builds up specialist skill and knowledge Often charge a higher price Higher profit margins Loyal customers
What are the disadvantages of a Niche Market?
Lack of economies of scale
Risk of over dependence on single market
Likely to attract competition if successful
Vulnerable to market changes
What is Mass Market?
When businesses aim their products at most of their available market
Give an example of Mass Market
Newspaper
What are the advantages of a Mass Market?
More customer form majority of market
Products meet the need of many customers
Economies of Scale
Low cost operation
What are the disadvantages of a Mass Market?
Difference in how it effects Geographical areas
Expensive
Changes in marketing environment aren’t factored in
