Decision making to improve marketing performance -3.3 Flashcards
What is the process of segmentation?
Identifying groups of similar needs and wants within a market.
What categories are involved in segmentation?
-Demographic (age, gender)
-Geographic (area in which customers are based)
-Income (higher income earners may be more interested in investing)
What is the value of segmentation?
Produce more efficient marketing. Managers are also able to meet needs with what is practical, efficient and profitable.
What is the process of targeting?
Choosing which segment to focus on.
What is the value of targeting?
Meet needs more precisely and effectively to increase competitiveness and provide profits.
What is the process of positioning?
How products are perceived relative to competitors. Shown through market mapping.
What is the value of positioning?
Managers identify two key aspects of the product that customers use to judge and can then plot where business or product sits relative to others in the market.
What are the influences on choosing the target market?
-Sufficient demand as for example, universities drop subjects because the segment is too small
-Ability to be competitive and gain sales as for example, universities targets courses where it feels it can excel.
What are the influences on positioning of a product?
-Strengths of the business as for example if a business is efficient it may aim to be a low-price provider
-Competitors as deciding where to position yourself in the market will depend on what is already being offered
What is niche marketing?
Focusing on a particular segment of the market. Able to focus marketing activities more precisely.
What is mass marketing?
Aiming to provide products that meet needs of a large population of the market.
