4.2|Marketing planning

Question 1

what is market segmet?
what is market segmentation?
example of market segments?

Answer 1

Individual sub-groups of large market, customers who share common/similar characteristics

dividing a market for a product into smaller group to meet specific needs and wants.

example:
1. age
2. gender
3. income
4. lifestyle

Question 2

State 4 ways a makret can be segmented

Answer 2

1. Demographic segmentation (age, gender)
2. Pshycographic segmentation (climate)
3. Socio-economic segmentation (income e.g. airplane sit ticket)
4. Geographic segmentation (personal value; vegan, lifestyle;hobby)

Question 3

what is mass market?

Answer 3

Supply products to cater for a broad range of target markets

e.g. Drinking water

Question 4

what is niche market?

Answer 4

Supply highly specialised products to cater for a small and select target market

e.g. Luxurious watch

Question 5

what is product position map?
what are the common criteria being compared?
what are the benefits?
what are the categories of products can be identfited from price and quality axes?

Answer 5

Customer perception of a business, its products or brands in comparison to other firms in the industry.

Price and quality

1. Help business to identify potential gaps in the market.
2. Help business to improve the product portfolio management.

Premium product (high price, high quality)
Cowboy product (high price, low quality)
1.Customer regards as “rip off” product
2.Use by business to maximise sales in short term
Bargain product (low price, high quality)
1. Low porfit margin
2. Increase sales and brand awareness in short term
Economy product (low price, low quality)
1. e.g. supermarket own-label product (sabun watson)