segmentation Flashcards
what is market segments
are groups of customers with similar needs and wants
what is segmentation
means identifying which segments exist within a market
what is targeting
means choosing which segments at which to aim your products
what are the 4 types of segmentation
demographic
geographic
behavioural
income
3 benefits of niche marketing
high sales due to lack of competition
can charge high prices
customer loyalty
disadvantages of niche marketing
attract competition
higher average costs because of the low volume of sales
may not be enough customers to generate sufficient funds
what is mass marketing
means devising products with wide appeal and promoting them to all types of customers
benefits of mass marketing
high sales due to larger number of potential customers
low average costs can allow lower prices to be charged
drawbacks of mass marketing
greater amount of competition
harder to establish a USP
advantages of targeting specific market segments
products meet customers needs or wants prices they are willing to pay promotional methods places where your products are sold primary research
disadvantages of targeting specific market segments
may be inaccurate
limit your level of sales
what is market mapping
identifying two key features of products or businesses in a market
placing each product or business in a grid against those two features
what is in the marketing mix
the 7 p's promotion price people physical evidence product place process
