Marketung Segmentation, Targeting & Positioning

Question 1

What are market segments

Answer 1

Dividing a market into groups of consumers with similar wants or needs from a bus8ness

Question 2

What is segmentation

Answer 2

Identifying which segments exist within a market

Question 3

Segments of markets may be

Answer 3

Geographic (based on where customers live; region, country, urban or rural)
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Behavioural (based on consumers’ life-style, hobbies & interests and buying habits)
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Income (based on how much people earn/socio-economic groups)
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Demographic (based on age, gender, marital status or family size).

Question 4

Advantages of targeting market growth

Answer 4

Businesses can make better decisions about:

• Prices that customers are willing to pay
• Places where products are sold
• Promotional methods
• Primary research so it’s aimed at suitable people

Question 5

Disadvantages of targeting specific markets

Answer 5

They might be inaccurate so you could make incorrect decisions on products, prices & promotional methods

Business might limit level of sales by not appealing to a larger market

Question 6

What is positioning

Answer 6

How businesses differentiate themselves from their competitors. It can be based on product range, prices, customer service or any other relevant factors