Section 4 Test Prep Activities

Breaking your target market into smaller, more specific markets.

Market Segmentation

The type of competition in which you are competing against a business that sells the same products/services that you do.

Direct Competition

Breaking a target market down by location.

Geographic Segmentation

How consumers view a product/service or the unique image of a product or service.

Market Positioning

The total dollar amount spent per year on a particular product/service in a target market.

Market Potential

Quality, Location, Brand and Extra Services are examples of factors in this type of competition.

Non-price Competition

Breaking down a target market by age, gender, income level, eduction, etc.... is an example of this type of segmentation.

Demographic Segmentation

Positioning a product based upon features above and beyond the intended purpose.

Attributes Positioning

The amount that a business achieves of the total sales in a target market.

Market Share

A type of competition against a product/service that is similar but is not in your exact product classification.

Indirect Competition

Positioning a produce/service head to head against an identical product/service.

Competition Positioning

Breaking down a target market based upon the interests and opinions of the consumers.

Psychographic Segmentation

Positioning a product as inexpensive to show that it is a great value.

Price and Quality Positioning.

Breaking down a segment by the unique needs that a product or service meets.

Benefits Derived Segmentation

Positioning a product that represents a certain type of person or personality.

Product User Positioning

six ways that companies position their products

Attributes, Price & Quality, Use or Application, Product User, Product Classification, and Competition