decision making to improve marketing performance 3.3

• three strategies for targeting a market

  mass marketing

  segmented marketing (differentiated)

  concentrated marketing (niche)
• Market segmentation


  involves dividing a market into parts that reflect different customer needs and wants.

  demographic, geographical and behavioural
• consumer goods


  bought by final consumers for personal consumption and they differ in the way that consumers buy them.
• industrial goods


  bought for further processing or for use in conducting a business and are bought by other businesses and not by consumers.
• price skimming


  setting a high price when a new product is launched into the market

  product is sold to different market segments at different times.
• Example company that uses price skimming


  Apple - commonly use price skimming for their electronic items.
• penetration pricing


  offer a product at a low introductory price. the aims are to grow market share and build consumer usage and loyalty to be able to raise prices after.
• dynamic pricing


  where businesses set flexible prices for products or services based on current market demands.
• industries that use dynamic pricing


  hotels , ubers , transport , train companies
• cost-based pricing


  setting prices based on the costs of producing, distributing, and selling the product

  overtime price must be more than the related product costs in order to make profit.
• multi channel distribution


  involves a business using more than one type of distribution channel.
• target market


  the set of customers sharing common needs and wants that a business decides to target
• market positioning


  the place a product occupies in customer minds relative to competing products.