3.3.3 Segmentation, targeting, positioning

Question 1

8 what is segmentation

Answer 1

the process of identifying different groups with similar needs
known as market segments

Question 2

8 what is an example of segmentation

Answer 2

toy market- boys and girls, age groups

Question 3

8 what are four types of segmentation

Answer 3

demographic
geographic
income
behavioural

Question 4

8 what is demographic segmentation

Answer 4

refers to characteristics of people in target population
age or gender
how we segment in society anyway

Question 5

8 what is geographic segmentation

Answer 5

groups needs and want based on what area target populations live in
Iceland vs Nigeria

Question 6

8 what is Income segmentation

Answer 6

needs and wants based on income
high vs low
high- saving and investing in products
low- borrowing and loaning

Question 7

8 how is income segmentation grouped

Answer 7

done on socio-economic grouping and profession

Question 8

8 what are the 6 categories of grouping

Answer 8

A
B
C1
C2
D
E

Question 9

8 what is A

Answer 9

higher managerial
adminstrative

Question 10

8 what is B

Answer 10

intermediate managerial
administrative

Question 11

8 what is C1

Answer 11

supervisors, clerical, junior managerial

Question 12

8 what is C2

Answer 12

skilled manual workers

Question 13

8 what is D

Answer 13

semi and unskilled manual workers

Question 14

8 what is E

Answer 14

casual labour

Question 15

8 what is behavioural segmentation

Answer 15

what customers actually do in their lives
when they buy, how much, brand loyalty, benefits they want from products, satisfy needs or achieve status

Question 16

8 why is segmentation valuable

Answer 16

understand what different groups want
enables more focused and efficient marketing
balance desire to meet customers needs with practicality

Question 17

8 what is positioning

Answer 17

identifies the benefit and price combination compared to competitors
how the product is viewed relative to competitors

Question 18

8 what is market mapping

Answer 18

analyses market conditions to identify position of one product relative to others in the terms of a given criteria
plot where your product should sit

Question 19

8 how might a clothes business map their market

Answer 19

expensive and cheap
modern and classic

Question 20

8 if a business offers more benefits…

Answer 20

makes them competitive, charge a higher price

Question 21

8 if a business charges a lower price…

Answer 21

makes them competitive, can offer fewer benefits

Question 22

8 if a business offers fewer benefits, or same as competitors…

Answer 22

charges a higher price, becomes uncompetitive

Question 23

8 if a business cannot offer more benefits…

Answer 23

charges a lower prices, offering more benefits will cost the business more

Question 24

8 what factors affect position

Answer 24

brand image
price
product
services

Question 25

8 what influences the position of a product

Answer 25

strength of a business innovation of a business competitors market conditions

Question 26

8 how does strength of a business affect a products position

Answer 26

very efficient will create lower prices, or be large and have bargaining power over suppliers, low cost provider

Question 27

8 how does innovation of a business affect a products position

Answer 27

highly skilled employees, resources and systems will all help to encourage development of ideas

Question 28

8 how does competitors affect a products position

Answer 28

produce market mapping to find out what already exists in the market and identify any gaps they can satisify

Question 29

8 how does market conditions affect a products position

Answer 29

external influences by analysing PEST-LEC model

Question 30

8 what is targeting

Answer 30

focus on a particular segment must have sufficient demand and potential profit be competitive and gain sales

Question 31

9 what is a niche market

Answer 31

occurs when a business decides to focus on a specific segment of a larger market

Question 32

9 advantages of a niche market

Answer 32

less competition high market share charge higher prices appeals to a small target move into mass market easier

Question 33

9 disadvantages of a niche market

Answer 33

small market gain competition easily low target people total profit is usually low if niche grows, it will become mass

Question 34

9 what is a mass market

Answer 34

when a business decides to provide products that meet a large number of peoples needs no matching a specification portion of market

Question 35

9 advantages of mass marketing

Answer 35

more customers = more revenue and profits

Question 36

9 disadvantages of mass marketing

Answer 36

high investment needed more promotional techniques required more competition increase niche providers to reduce demand

Question 37

9 examples of mass market products

Answer 37

coca-cola ford iPhone cadbury walkers

Question 38

9 internal reasons for change?

Answer 38

financial position- level of investment staff- new market opportunities operations- greater efficiences, lower costs objectives- new managers

Question 39

9 external reasons for change

Answer 39

political- brexit economic- growing economy social- attitude in life technological- internet usage legal- law changes environmental- consumer awareness competition- benefits may reduce

Question 40

9 what are consumer products

Answer 40

brought by individuals, consume ourselves or give to others millions of customers targeted large numbers justify national advertising

Question 41

9 what are types of consumer products

Answer 41

convenience shopping speciality

Question 42

9 what is convenience items

Answer 42

milk, newspaper don't travel far for the products wide availability is important

Question 43

9 what is shopping goods

Answer 43

compare features and price between different options visit several stores before deciding show benefits compared with rivals

Question 44

9 what are speciality items

Answer 44

sports car, rolex watches think about purchases for years willing to travel far to buy brand is very important

Question 45

9 what are industrial products

Answer 45

products sold to businesses, used in own processes professional buyers less interested in packaging, more interest in technical performance understand exact vale represented, improve their competitiveness

Question 46

9 what four things influences the marketing mix

Answer 46

positioning in the market type of product external influences internal influences