segmentation

• how do businesses use marketing?

  they choose which customers to serve and then decide how to serve those customers
• what is market segmentation?


  involves dividing a market into parts that reflect different customer needs and wants
• What are the different customer needs and wants?

  Different customer needs and wants include demographic, income, behavioural, and geographical factors.
• What does demographic segmentation involve?

  Demographic segmentation involves dividing a market into segments based on demographic variables such as age, gender, and religion.
• What are some examples of demographic variables?

  Examples of demographic variables include age, gender, and religion.
• How does income segmentation work?

  Income segmentation divides markets into different income segments, often based on social economic grouping.
• What are some examples of behavioural segmentation factors?

  Examples of behavioural segmentation factors include occasions like Mother's Day and Easter, as well as new and loyal customers.
• What does behavioural segmentation focus on?

  Behavioural segmentation focuses on the different ways customers use or respond to a product and the benefits they seek.
• What is geographical segmentation?

  Geographical segmentation involves dividing a market into different geographical units such as nations, regions, and cities.
• what are the benefits of market segmentation?


  focuses resources on parts of the market where the business can succeed

  allows a business to grow its share in markets

  helps with new product development

  helps make the marketing mix more effective
• what are the drawbacks of market segmentation?


  its an imprecise science as data is nit always up to date or reliable

  just because you can identify a segment doesn't mean you can reach the customers in it

  markets are increasingly dynamic (fast changing) and so too are the segments
• what is a niche market?


  A niche market is a small, specialized segment of a larger market that caters to a specific customer need or interest.
• what is niche marketing?


  Targeting a specific segment of the market with specialized products or services.
• what is a mass market?


  Large group of consumers with similar needs and preferences.
• what is mass marketing?

  Mass marketing is a marketing strategy that targets a large and diverse audience with the aim of reaching as many potential customers as possible.
• advantages of niche marketing


  less competition

  customers tend to be more loyal

  targets specific customers
• disadvantages of niche marketing


  lack of economies of scale

  risk of over dependence on a single product or market

  likely to attract competition if successful
• what is a target market?


  A specific group of consumers that a company aims to sell its products or services to.
• what is market mapping?


  Market mapping is a visual representation of the competitive landscape in a specific market, showing the positioning of different products or brands based on their attributes or characteristics.