segmentation targeting and positioning

Question 1

market segmentation

Answer 1

• dividing market into parts that reflect diff customers needs and wants

Question 2

4 segments of ms

Answer 2

• demographic - e.g age gender family religion

income - yk already know

• behavioural - different ways ppl use /respond to product and benefits they seek from product

geographical - e.g cities , neighbourhoods etc

Question 3

effective ms benefits

Answer 3

• helps w new product development , focus on needs of customers in section
  -focus resources on parts of market where business can succeed

Question 4

limitation of ms

Answer 4

• just cos u can identify seg dont mean u can reach customers
  -markets r fast changing so are segments
• seg = imprecise, data not up to date , or reliable

Question 5

niche marketing

Answer 5

• target smaller seg of large market , specific needs and wants

Question 6

mass marketing

Answer 6

• largest part of market , many competitors

Question 7

niche market advantage

Answer 7

• less competition
• clear focus
• charger higher price
  customers more loyal

Question 8

niche market disadnvatges

Answer 8

• attract competition
• vulnerable to market changes
• lack of economies of scale

Question 9

mass market features

Answer 9

• customers form majority of market
• customers needs more general and less specific

Question 10

target market

Answer 10

set of customers , share common needs and wants that business decides to target

Question 11

3 main strategies for targeting market

Answer 11

• mass marketing - targets whole market , focuses on customers needs and wants that are in common not how they differ
• segmented- target diff segments in the same market
• concentrated - focuses on smaller segments/ niches

Question 12

advantages of market map

Answer 12

• spot gaps
• analysing competitors
• encourages use of market research

disadvantage -
- just because there’s a gap doesn’t mean there’s demand
- not guaranteed success
- how reliable is research