Mass, Niche, Market Segmentation

Segmentation of a market is done to help with?

• Targeting advertising more accurately
• Increase the amount of products being made
• Improving the quality of goods being sold
• Making sure that workers are happy at work

How is a market segmented by 'income'?

• People have different hobbies and interests, which can be connected to income and location.
• Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
• The population can also be divided into; low income, middle income and high income. 
• Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old

How is a market segmented by 'lifestyle'?

• Products can be aimed specifically at males or females or both
• People have different hobbies and interests, which can be connected to income and location.
• Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
• Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old

How is a market segmented by 'location'?

• Products can be aimed specifically at males or females or both
• People have different hobbies and interests, which can be connected to income and location.
• Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
• Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old

Mass marketing is about
 

• Aiming a product at one particular segment
• Developing products for different segments
• Going for a global marketing strategy
• Aiming the product at the entire market

Identifying and exploiting a small segment of a larger market by developing products to suit it.

• Mass Marketing

• Market Segmentation

• Niche Marketing

• Target Market

Advantages of niche marketing:

• Small market do not allow lower average costs of production

• Fewer risk

• Create an image of cheap, low quality product

• create a chance to sell at high prices

Limitation of market segmentation:

• Design and produce goods that are specifically aimed the market segment

• Research and development cost might be high

• Differentiated marketing strategies can be focused on target market groups

• Limiting the size of the market

Potential benefit to a business of adopting a mass marketing:

• Higher profit margins are likely to be earned compared to a niche marketing strategy

• Marketing costs per unit will be lower than with niche strategy

• Sales will always be higher than with a niche strategy

• Product will be adapted to set the needs of separate groups of consumers