Making marketing decisions (segmentation, targeting, positioning)

Question 1

what is meant by market segmentation?

Answer 1

splits up a market into different types to enable a business to target its products to relevant customers

Question 2

What is niche marketing?

Answer 2

where a business targets a smaller segmant of a larger market (customers have specific needs and wants)

Question 3

sections of market map?

Answer 3

high quality, low quality, high price, low price

Question 4

How may market maps be useful?

Answer 4

allows for business to see a gap in the market.

Question 5

What is market share?

Answer 5

is the percentage of total sales that a business has in a specified market

Question 6

What is a target market?

Answer 6

the set of customers sharing common needs, wants & expectations that a business tries to sell to.

Question 7

What does market positioning determine?

Answer 7

determines to a large extent as to what customers believe is being offered to them.

Question 8

What 2 decisions do businesses make when market positioning and what does it involve?

Answer 8

choose which customers to serve. INVOLVES:
-market segmentation
-Targeting
Choose how to serve those customers. INVOLVES:
-product differentiation
-market positioning