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A-level Business > Segmentation, targeting and positioning > Flashcards

Segmentation, targeting and positioning Flashcards

1
Q

What is market segmentation?

A

Dividing a market into different parts that reflect customer wants and needs.

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2
Q

What are the 4 traditional ways of segmenting a market?

A

Demographic, Income, Behavioural, Geographical

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3
Q

What is a demographic segment?

A

Dividing a market based on age, gender, religion, nationality

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4
Q

What is an income segment?

A

lower incomes, medium incomes, higher

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5
Q

What is a behavioural segment?

A

how customers use or respond to a product

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6
Q

What is a geographical segment?

A

Dividing a market based on location, nations, cities, regions

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7
Q

What are the benefits of market segmentation?

A

Helps product and market development
Allows businesses to grow in certain markets
Focuses resources where a business can succeed

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8
Q

What are the drawbacks of market segementation?

A

Not always reliable
Markets are fast changing

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9
Q

What is a niche market?

A

Smaller segment of a larger market

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10
Q

What is a mass market?

A

Business sells into the largest part of the market

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11
Q

What are the features of a mass market?

A

Customers are the majority
Potential to economies of scale
Needs more general

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12
Q

What are the features of a niche market?

A

Less potential for economies of scale
Needs more targeted

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13
Q

What are the features of targeting a niche market?

A

Less competition
Build up specialist knowledge
Loyal customers

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14
Q

What are the disadvantages of targeting a niche market?

A

Lack of economies of scale
Risk of over dependence on one product, vulnerable to change

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15
Q

What are the 3 kinds of target market?

A

Mass market, Segmented, concentrated

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16
Q

How do you analyse market position?

A

With a market map

17
Q

What axis may be used for a market map?

A

price, quality, volume

18
Q

What are the benefits of a market map?

A

Highlights gaps in the market, useful for analysing competitors, encourages market research

19
Q

What are the drawbacks of a market map?

A

Gap doesn’t indicate demand, might not always be successful, market research not always reliable

20
Q

How can positioning provide a competitive advantage?

A

Offer more or less depending on gap in market e.g., cheaper alternative or high end service

21
Q

What is product differentiation?

A

Creating a distinct difference in your product

22
Q

Why is product differentiation good?

A

Compete, build a brand with added value

A-level Business (79 decks)

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