stp

• What is market segmentation?

  Dividing potential customers into groups
• Why do businesses segment their market?

  To identify profitable customer groups
• How might a t-shirt business segment its market by gender?

  By offering different shapes and colors
• What is an example of income-based segmentation?

  Offering basic and premium packages
• What factors might a business consider when expanding geographically?

  Profitability of potential new locations
• How might lifestyle segmentation be applied by holiday providers?

  By offering tailored holiday experiences
• What are the pros of market segmentation?

  • Better meeting of customer needs
  • Increased brand loyalty
  • Higher repeat customers
  • Reduced price sensitivity
  • Potential for higher profits
• What are the cons of market segmentation?

  • Higher research and development costs
  • Increased production costs
  • Additional marketing costs
  • Wider product range reduces economies of scale
• How does market segmentation lead to increased brand loyalty?

  By offering tailored products to customers
• Why might segmentation lead to higher production costs?

  Due to the need for more raw materials
• How can segmentation affect pricing strategies?

  It can reduce price sensitivity of customers
• What might a business do to exploit economies of scale?

  Limit the range of products offered
• What is mass marketing?

  Marketing to the whole market, ignoring segments
• Why does mass marketing ignore market segments?

  It targets the entire market as a whole
• What are some ways market segments can be categorized?

  By behavior, income, geography, demographic
• How does mass marketing differ from niche marketing?

  Mass marketing targets the whole market
• What is the primary goal of mass marketing?

  To generate high sales volume
• What is the significance of economies of scale in mass marketing?

  They help lower average unit costs
• What is an advantage of mass marketing regarding marketing research?

  It requires less marketing research
• How does mass marketing create brand awareness?

  By targeting the entire market simultaneously
• What is a potential downside of mass marketing related to customer needs?

  It may not meet every customer's needs
• How does mass marketing affect profit margins?

  It may lower profit margins per product
• What is a challenge of operating in a large market for mass marketing?

  Higher levels of competition
• What financial requirement is necessary for mass production in mass marketing?

  Finance to implement production methods
• How has digital marketing impacted mass marketing?

  It offers more efficient audience reach
• What is a key characteristic of customer needs in mass marketing?

  They are simple and general
• What are the pros and cons of mass marketing?

  Pros:

  • Requires less marketing research
  • Creates brand awareness
  • Focuses on high sales volume
  • Economies of scale reduce costs

  
  

  Cons:

  • Less ability to meet customer needs
  • Lower profit margins per product
  • Higher competition in large markets
  • Requires significant finance for production
• What is niche marketing?

  Targeting a subsection of the market
• How does niche marketing focus on customer needs?

  By addressing specific needs within a segment
• What might a business focus on in niche marketing?

  Targeting consumers within a price range
• How can niche marketing benefit small businesses?

  It allows them to compete with larger businesses
• What is product proliferation in niche marketing?

  Offering niches within product ranges
• What are the advantages of niche marketing?

  Better customer satisfaction and brand loyalty
• How does niche marketing lead to higher profit margins?

  By increasing brand loyalty and raising prices
• What is a disadvantage of niche marketing?

  Limited opportunity for market growth
• Why is reliance on a specific niche a disadvantage?


  Because trends may change or die
• What is the impact of not obtaining economies of scale in niche marketing?

  Higher costs and potential price increases
• What are the two decisions a business might face due to higher costs in niche marketing?

  Raise prices or lower profit margins
• What are the key advantages of niche marketing?

  • Better meet customer needs
  • Higher levels of customer satisfaction
  • Increased brand loyalty
  • Ability to raise prices for higher profit margins
• What are the disadvantages of niche marketing?

  • Limited opportunity for market growth
  • Reliance on specific niche trends
  • Higher costs due to lack of economies of scale