Market segmentation and strategy Flashcards
what is market segmentation
Dividing a market into parts that reflect different customer needs and wants
What is targeting
deciding which market segments to enter
what is product differentiation
what makes it difference from competition
what is market positioning
how customer perceive the product
What are the four traditional ways of segmenting a market
Demographic, Income, behavioural , geographical
What is product differentiation
Where a product has a value proposition that is sustainably different from competition
Advantages of positioning maps
Helps spot gaps in the market , useful for analysing competitors, encourages use of market research
disadvantages of positioning maps
Gaps don’t mean demand is there, no guarantee of success.
product differentiation allows a business to…
Compete effectively, protect and build a brand, add more value
key requirements for effective product differentiation…
Capable o delivering what is important, distinctive, not easily copied, affordable by target consumers, profitable
