3.3.3 making marketing decisions :segemntation,targeting,positioning (copy)

how do businesses use marketing to create value for customers

choosing which customers to serve by using market segemtation and targeting

how do businesses use marketing to create value for customers

decide how to serve those cusomers by using product differenttaion and market postions

what is market segmentation

dividing a market into parts the reflect different customers needs and wants

what are the main categories of market segmentation

demographic

geographic

income

behavioural

adv of market segmentation (4)

focuses resources on parts of the market where business can succeed

allows businesses to grow shares in the market of a fast-growing segment

help with view product development as it focuses on needs of customer in segment

helps make marketing mix more effective

disadv of market segmentation (3)

segmentation data is not always avalible or up to date

identifing a segment doesnt mean that you can reach the customer

markets are increasing dynamic and fast changing therefore so are segment

what is a target market

set of customer sharing common needs and eants that a business decides to target

main strategies for targeting a markets- mass marketing (undifferenciated)

business taget the whole msrket, ignoring segments and products and focus on the need nad wants that are in common and not wehats different

main strategies for targeting a markets-segmented ( differenciated)

businesses taget several market segemens within the same markets

products are designed and targeted at each segemnts

requires seperate marketing palns and often different business units and product portfollios

main strategies for targeting a markets-concentrated (niche)

business can focuse narrowly on smaller segments or niche

aims is to achieve a strong market postion whithin those niche

what is market positioning

defined by the customers

market psotioning map illistrates a range of postions that a product can take in a market based on two dimenstions that are important to customers

what is a niche market

smaller segement of a larger market where customers have more specific needs and wants

what is a mass market

larger part of market where there are similar products offered by competitors ad customers are less specific abt rheir needs and wants

key feature of a mass market

customers form largest part of market

customers needs and wants are more general and less specific

assosiated with higher production output and capacity and potential for economies of scale

success usually assossiated with low cost opperations or market leading brands

adv of successful mass marketing (4)

widest potential customer base

lower risk as resources are focused on one large market

low unit cost from economies of scale

market research cost reletively low

adv of targeting niche market (6)

less comp

clear focus as it targets particular customers

builds up specialist skill and knowleadge

can often charge higher price

profit margin often higher

customets potentially more loyal

disadv of targeting niche market (4)

lack of economies of scale

risk of overdependence on singular product or market

likely to attract comp is successful

vunreble if market changes