IGCSE C10- Lesson 2 - Marketing, competition and the customer

Recap: Lesson 1 - Marketing, competition and the customer

Multiple Select

Which the followings are roles of marketing?

(The answer can be more than 1)

• Identifying and satisfying customer needs

• Building customer relationships

• Ensuring the quality of product in production process

• Maintaining customer loyalty

Multiple Select

Which of the followings are reasons for the change in customers' spending pattern?

(the answer can be more than 1)

• Changes in tastes and fashion

• Ageing population

• Changes in customer income

• Changes in technology

Multiple Choice

Which of the followings is NOT the reason of why some markets become more competitive?

• There are not enough competitors in the market

• Internet/e-commerce

• Globalisation

• Improvement in transportation

I will be able

to………

Key Words

Mass market; Niche market; Market segmentation

Ch 10: Marketing, competition and the
customer

Explain

and

apply

knowledge

on

the

concept

of

niche

marketing

and

mass

marketing, market segmentation, how to
recommend and justify appropriate method
of segmentation.

04/03/2023

Key words

Keywords

Definition

Mass market

Where there is a very large number of sales of a product.

Niche market

A small, usually specialised, segment of a much larger market.

Market
segmentation

An identifiable sub-group of a whole market in which consumers
have similar characteristics or preferences.

What is Market?

•

Total number of customers
and potential customers for
a particular good or service

•

Measured by total number
of sales, or Smartphone Market |
Growth, Trends, and Forecasts (2021-2026)
(mordorintelligence.com)

•

By the value of the sales

•

Mass market or niche
market

Mass Marketing

• Very high level of sales with

many people in the
population buying the
product

• Products are designed to

appeal to whole market

• Advertising and promotion

appeals to most customers

Multiple Choice

Weetabix

Bright Food, one of China's largest food groups, has bought a 60% controlling share in the ownership of UK breakfast cereal brand, Weetabix. This acquisition is done in order to develop Weetabix business with Bright Food's strong resources and their expertise.

Why might the market for Weetabix described as a mass market?

• Because they are supplying their goods to a very large market with millions of potential consumers.

• Because most of the UK people eat cereal as their breakfast menu.

• Because Food Bright in a giant multinational company that has many loyal customers.

• None of the above is the correct answer.

Mass Marketing-Advantages
& Disadvantages

Advantages
•

High total sales

•

Benefit from economies of scale

•

Risk can be spread

•

Opportunities for growth

Disadvantages:
•

Highly competitive

•

High cost of advertising &
promotion

•

Lost sales from meeting
customers’ specific needs

Multiple Choice

Which of the followings is the benefit of mass marketing?

• Less effect from small changes in consumer spending patterns

• small firms are able to survive and earn profit

• consumer will usually pay more for a high status

• Firms do not waste scarce resources responding to competitors actions.

Niche Marketing

• Product sold to a very small

number of customers

• Specialised product
• Often sold by small business
• Specialised food, collector

items, expensive products,
etc.

Niche Marketing- Advantages
& Disadvantages

Advantages:
•

Opportunity for small business
to flourish

•

High level of customer loyalty
and good customer relations

Disadvantages:
•

Small market size limited
sales potential

•

Increased risk due to limited
product varieties
(specialization)

Multiple Choice

Which of the followings is NOT the limitation of niche marketing?

• less competition

• possibility to have higher profit might attract other competitors

• economies of scales are unlikely to be achieved

• huge impact from small changes in consumer spending patterns

Multiple Choice

Identifying and developing products for the whole market

• Niche marketing

• Mass marketing

• Geographic marketing

• Demographic segmentation

• Market segment

Multiple Choice

Potential for high volume of sales

• Mass marketing

• Niche marketing

Multiple Choice

Opportunity to charge high prices and earn high profit margins

• Mass marketing

• Niche marketing

Market Segments

“An identifiable sub-group of a whole
market in which consumers have
similar characteristics and
preferences”

The benefits of segmenting a market:
•

Improve cost effectiveness of
marketing expenditure

•

Higher sales and profit due to
effective marketing

•

Higher sales due to identifying
unserved or underserved market

Market Segments
– Common Ways

• By socio-economic group –

Ferrari marketed to high
income group vs Tata Nano
for lower income group

• By age – cosmetics for teens

vs cosmetics for women over
40

• By region/location – AC in

middle east vs heater in
European countries

• By gender – abaya for ladies

and thobe for gents

• By use of the product –

computers marketed for
gaming vs for office use

• By lifestyle – tour packages

offered to soccer fans vs
people who love
wildlife/nature

Multiple Choice

Dividing a market according to the location of consumers

• Niche marketing

• Mass marketing

• Geographic marketing

• Demographic segmentation

• Market segment

Multiple Choice

Economies of scale are unlikely

• Mass marketing

• Niche marketing

Market Segments – Factors
for Considerations

• Detailed analysis of market

and the size of each
potential segment

• Company image and brand

image

• Cost of entering each

segment

Multiple Select

Which of the followings are factors in the demographic segmentation?

(there are more than 1 answer)

• Age

• Family size

• Income

• Ethnic background

Multiple Choice

Dividing the whole market into smaller parts by consumer characteristics

• Market segmentation

• Mass marketing

• Geographic marketing

• Demographic segmentation

• Market segment

Multiple Select

Which of the followings is the benefit of segmentation to business?

(there can be more than 1 answer)

• to help the business in deciding what they want to produce in order to gain higher profit

• none of the able

• marketing strategies can be better targeted at each segment

• the design of goods and services can meet the specific needs of consumers in each segment

I have been

learning
to………

Key Words

Mass market; Niche market; Market segmentation

Explain

and

apply

knowledge

on

the

concept

of

niche

marketing

and

mass

marketing, market segmentation, how to
recommend and justify appropriate method
of segmentation.