3.3.3 making marketing decisions

define market segmentation

breaking market down smaller parts

two advantages of market segmentation

meet needs better

smaller segment ads cheaper and more effective

disadvantage of market segmentation

less customers targeted so there are possible missed opportunities

4 types of market segmentation

demographic
geographic
behavioural
income

demographic segmentation

based on customer attributes

example of demographic segmentation

bulldog adult men

geographical segmentation

based on defined geographical boundaries

example of geo segmentation

ice cream vans warm weather

behavioural segmentation

based on actual customer spending

example of behavioural segmentation

nectar cards "you deserve it"

income segmentation

based on earnings

define targeting

deciding on what segment to focus on and adapting the marketing mix to appeal to this group better

what may businesses consider when targeting

size of segment
growth in segment
competition
accessibility

define concentrated marketing

focusing on one or two segments Rolls Royce

define differentiated marketing

focusing on several segments and adapting the marketing mix to try appeal to all of them

colouring books

define undifferentiated marketing

ignoring market segments which is useful for widely used products such as toothpaste

adv of undifferentiated marketing

high sales volume and low marketing costs

define positioning

creating an image of a product in a customer's mind so they see it as better than the comp

examples of positioning

aldi spend a little live a lot

influences on positioning

state of the market
company's current products
company attributes