market segmentation targeting and positioning Flashcards
what is a market segment?
the groups of similar need within a market
what’s targeting?
this is when a business decides which segment go operate in
what’s a mass market?
this is when a firm aims at the whole market. it’s products have mass appeal to all types of customers
what’s a niche market?
this is when a firm focuses on a particular segment of the market. it’s products appeal to a particular type of customer
define market positioning
this is where a firms’ product or brand stands in relation to competitors
what is competitive advantage?
this is an advantage over competitors gained by offering consumers greater value, either by means of lower prices of by providing greater benefits and service that justifies higher prices
describe the 4 different methods of segmenting a market
demographic- divide the population into subsets that have common characteristics e.g. sex, age, race
geographic- can be regions of a country or by country
income- households with high incomes will have different demands from low income users; segment according to socio-economic group
behavioural- divides the market up according to what they do or how people behave as consumers e.g. are they loyal to a brand, how often they buy a product etc.
what are the 3 main positions?
high price but high benefits to consumers
average price and average benefits to consumers
low price and low benefits to consumers
what can you use to plot a firms position in a market?
market mapping
what’s an advantage of mass marketing?
large sales volume, large revenue and profit
advantages of niche marketing?
less competition, premium prices, dominate segments
define market segmentation
the classification of customers, or potential customers into smaller sections or sub groups that share common characteristics
