Market Studies Flashcards
Market Segmentation
The process of splitting up customers within a market into groups with common characteristics needs or wants
Location Segmentation
the process of splitting up customers within a market into where they live
Income Segmentation
the process of splitting up customers within a market into how much money they earn
Lifestyle Segmentation
the process of splitting up customers within a market into how they live their lives
Demographic Segmentation
the process of splitting up customers within a market into age groups
Competition
businesses operating in your market or market sector
Market Mapping
Measuring where existing brands sit on a two-factor grid
Advantages of market mapping
Simple and easy to use
Identifies gaps where there is less competition
Disadvantages of market mapping
Could provide an unattractive gap in the market
Opinion based
Market Mapping purposes
To identify gaps in the market
To show where sectors are overcrowded
To understand why a producer should not become too reliant on one sector
Market Research
The process of gathering, presenting and analysing data relevant to marketing decisions
Advantages of primary market research
Specific to your needs
Up to date
Can be cheap
Disadvantages of primary market research
Lack of expertise
Time consuming
Results maybe limited
Advantages of secondary market research
Already exists
May be complied by experts
Quick to access
Disadvantages of secondary market research
Can be out of date
Often expensive
Not specific to you
