Unit 5.2 - Segmentation Flashcards
What does ‘The Market’ mean?
The demand for their product and what the sales are.
What is a Mass Market?
Give an example
Main market targeting as many people as possible.
e.g Dairy Milk, Eggs, Milk
What is a Niche Market?
Give an example
Small specialised market catering for a very small part of the total market.
e.g Gluten Free, Wedding Cakes, Maternity Clothes.
What is the Market Growth Equation?
Market Growth = change in market size/original market size*100
If the market was worth £50,00 and now is worth £60,00, what is the market growth?
market growth = 10,00/50,00*100= 20%
How can a business segment its customers?
Age, Gender, Race, Religion, Nationality, Location, Income, Stage in their life cycle.
What are the benefits of segmenting a business?
A business can develop its products to fit customer needs more closely, A business can target its customers more precisely, A business can set the price appropriately.
What do you think think targeting means?
Once a business has identified relevant segments in its market, it will need to decide which ones to focus on (target). A business will target segments where it thinks,
It can make a high enough return; some segments may be too small or not profitable enough, It can compete effectively, that is, it has the skills and resources to win market share, It covers the opportunity cost - there are no better alternatives
