Market segmentation and marketing mix (Price) Flashcards
Outline what is meant by market segmentation
the process of splitting a business’ target market into different groups
Identify one benefit of market segmentation
helping you to target the right people with the right messaging at the right time
Outline three ways that a business can segment the market.
To target everyone, meet customers needs, and try to target something
Outline what is mean by the key term target market
a specific group of potential customers who a business aims to reach with its products or services
Explain how market segmentation helps with advertising
allows marketers to create more personalised digital advertising by providing insights and defining the characteristics of your audience
State the four elements of the marketing mix.
Price, price promotion and place
Outline why price is an important element of the marketing mix.
higher price leaves more room for a higher marketing budget, while a lower price increases marketing effectiveness
State two factors that affect the price of products and services
if there is a high demand for the product, but a shortage of supply, then the business can put prices up
Outline what is meant by cost-plus pricing.
a pricing method used by companies to determine the price of a product or service
State what is meant by price skimming
Where the price is set higher since customers are legible to pay higher for a high quality product. After time the price will be reduced
Identify three other pricing strategies.
-penetration pricing
-promotion pricing
-competitor pricing
