Market segmentation - (Target markets & segmentation)
Psychographic segmentation includes what?
attitudes, beliefs, religious affiliations
What is the definition of a market?
Anyone who is willing and capable of buying a product
Why do businesses need to segment their markets?
Because customers differ in their wants and needs
Geographical
Can geographically segment a market by area, such as cities, countries, regions and counties. E.g. customers within 10 miles of the M25
Behavioural
Can segment market by their buying behaviour. On the basis of buying patters such as frequency and brand loyalty.
When examining internal factors, what are the 3 c's a marketer will focus on?
Consumers, competition, companies
What is the purpose of segmenting?
Identify target market and focus scope of marketing plan
Behavioral Segmentation
dividing a market into segments based on consumer knowledge, buying behaviors, uses of a product, or responses to a product
Five components of a marketing plan
executive summary, introduction, situation analysis, marketing strategy, implementation
Market Segmentation
Identifying groups of individuals with common characteristics in order to identify a target market for a product or brand
What are the internal factors in a situational analysis?
Strengths & weaknesses
A consumer profile is
the description of a typical customer
Demographic
Age, gender, occupation, socio-economic group. Surface level information
What is the 80/20 rule?
80% of your sales/business comes from 20% of your customers
Segment
Market segmentation splits up a market into different types (segments) to enable a business to better target its products to the relevant customers.
What are the external factors in a situational analysis?
Opportunities & weaknesses
Psychographic
Personality, lifestyles, attitudes, class. E.g. customer who prefer to buy organic food.
Order of the five steps in the decision making process
Problem recognition, info search, alternative evaluation, purchase, post purchase evaluation
Customers
Purchases and pays for a product or a service.
Brand
The identification, e.g. logo of a product/service which is instantly recognisable without explanation.
What is the purpose of a marketing plan?
The marketing plan gives a description of major marketing activities, a description of resources needed, and a schedule of marketing activities. This allows anyone an understanding of how the company or brand plans to identify their target market and then market their product.
What is a target market?
Those most likely to buy your product or service.
What are the ways to segment a market?
geographic, demographic, psychographic, behavioral
What are the five levels of Maslow's Hierarchy
physiological needs, safety/security needs, love/belonging (wants), esteem and recognition (wants), self-actualization (wants)
What are the different types of buying motives?
rational, emotional, patronage
What are the three types of decision making?
routine, limited, extensive
Market Share
the portion of a market controlled by a particular company or product.
