Content

• Benefits of market segmentation

  Avoid wasting resources on uninterested consumers

  increase customer satisfaction
• Factors influencing PED

  availability of substitutes

  If it’s a necessity or luxury

  Brand loyalty
• What’s the value of using market mapping

  Identify market gaps - potential opportunities

  Helps position reduce effectively vs competitor

  However it’s not always accurate
• Benefit & drawback of using primary market research

  Tailored data so more relevant to your business

  Expensive & time consuming
• Impact on business for using penetration pricing

  Attracts customers with low prices

  profits may be low
• Importance of setting clear marketing objectives

  Provides direction & focus for marketing team

  Enables measurement on performance

  But could lead to unrealistic expectations if based on poor data
• Usefulness of market segmentation to a small business

  Help gain customer loyalty in a niche market

  Risk of ofer segmentation or ignoring potential customers

  Would be more useful if information is reliable
• Impact of using digital marketing as part of promotion mix

  Cost effective - everything ran on socials

  Allows targeting & tracking

  But ads could reduce effectiveness
• Impact of price skimming when launching new product

  Helps recover development costs

  Can see how much customers are willing to pay

  May lose market share if there’s other cheaper alternatives