Market Segmentation and Competitive Advantage Flashcards Preview

Edexcel Business A level Unit 1 > Market Segmentation and Competitive Advantage > Flashcards

Flashcards in Market Segmentation and Competitive Advantage Deck (12)
Loading flashcards...
1

What is market segmentation:

Market segmentation is when a business splits a market in different sections of consumers, each with a similar set of needs.

2

What are the 4 types of market segmentation:

-Geographic Segmentation
-Demographic Segmentation
-Psychographic Segmentation
-Behavioural Segmentation

3

What is Geographic Segmentation:

-Grouping customers together based on where they live.

4

What is Demographic Segmentation:

-Grouping customers based on their age, gender, income, social class, ethnicity or religion.

5

What is Psychographic Segmentation:

-Grouping customers based on their attitudes, opinions and lifestyles.

6

What is Behavioural Segmentation:

-Grouping customers based on their behavior towards a product, i.e. their usage rate and loyalty towards the product.

7

What is Competitive Advantage:

-Competitive Advantage means to gain something over your competitors by having a unique feature which makes your product superior to theirs.

8

Ways businesses can get competitive advantages:

Product design.
Product quality.
Promotion.
Customer service.

9

Other ways businesses can get competitive advantages:

-Delivery times.
Ethical stance.
Flexibility.

10

What are two key sources of competitive advantages:

-Cost advantage: where a business is able to produce its product at lower cost than the competition.
-Differentiation advantage: Where a business is able to differentiation its product

11

What is Cost advantage:

-Where a business is able to produce its product at lower cost than the competition.

12

What is Differentiation advantage:

-Where a business is able to differentiate its product from the competition such that customers perceive superior value.