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Table of Contents

  1. Topic pack - Marketing - introduction
  2. 4.1 The role of marketing - notes
  3. 4.1 The role of marketing - questions
  4. 4.2 Marketing Planning - notes
    1. Marketing planning
    2. The marketing mix
    3. The Total Product Concept
    4. Ethics of marketing
    5. Marketing audit
    6. Porter's five forces
    7. Porter's five forces - activities
    8. Marketing objectives
    9. Market research - introduction
    10. The role of market research
    11. Primary and secondary research
    12. Primary research - information gathering techniques
    13. Observations - case studies
    14. Group-based market research
    15. Market research - summary
    16. Questionnaires
    17. Sampling
    18. Methods of sampling - introduction
    19. Main methods of sampling
    20. Sampling errors
    21. Market segmentation
    22. Consumer Profiles
    23. Types of segments
    24. Demographic segmentation
    25. Psychographic segmentation
    26. Psychographic segmentation - case study
    27. Geographic segmentation
    28. Industrial markets
    29. Targeting
    30. Positioning
    31. Corporate image
    32. Position/perception maps
    33. Unique selling point/proposition USP
    34. Marketing strategies and tactics
    35. Sales forecasting
    36. Qualitative forecasting/data
    37. Forecasting and correlation
    38. Forecasting techniques
    39. Constructing time-series analysis
    40. Moving average
    41. Four point moving average - worked example
    42. Identifying the seasonal variation
  5. 4.2 Marketing planning - questions
  6. 4.3 Product introduction - notes
  7. 4.3 Product - questions
  8. 4.3 Product - simulations and activities
  9. 4.4 Price - notes
  10. 4.4 Price - questions
  11. 4.4 Price - simulations and activities
  12. 4.4 Promotion - notes
  13. 4.5 Promotion - questions
  14. 4.6 Place (distribution) - notes
  15. 4.7 International marketing - notes
  16. 4.7 International marketing - questions
  17. 4.8 E-commerce - notes
  18. 4.8 E-commerce - questions
  19. Printable version

Market segmentation

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Market segmentation

Market segmentation is the division of the market place into distinct subgroups or segments, each characterised by particular tastes and requiring a specific marketing mix.

The population of a country is not homogeneous; consisting of millions of individuals with different wants and needs. By dividing a market into segments it is easier for the firm to research the needs and wants of customers in a cost-effective manner and then to meet these in a targeted way. In short it is about a business 'knowing their customers'. Each segment will share certain characteristics, which bind them together while at the same time distinguishing them from other segments. Some segments may be quite small, e.g. specialist sports such as archery, so firms will be marketing to a niche market in this case, where the level of demand is limited.

Segmentation is the first stage of a three stage process:

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Targeting is the selection of potential customers to whom the firm wishes to sell products or services. The targeting strategy involves segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment.

Targeting is used to develop a specific marketing mix for each distinct marketing mix. A business offering multiple products can determine if the various segments should receive one generic product (such as in mass marketing), or if each segment should receive a customized product (multi-segment), based upon the market's diversity, maturity, the level of competition and the volume of sales expected

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Positioning is the creation of a distinct image for a product or service in the minds of customers, both specifically to that item and in relation to competitive offerings.

Firms apply positioning strategies by emphasizing either the distinguishing features of their brand (what it is, what it does and how, etc.) or by creating a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end) through relevant promotion. Once a brand is positioned in the eyes of its consumers, it is very difficult to reposition it without destroying its credibility.