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WorksheetsBusiness Marketing and Market Segmentation
Total questions: 42
Worksheet time: 38mins
USP stands for:
(a)
The why for why consumers will choose one product over that of a business' competitors:
(a)
All the processes involved in getting a product or service from the manufacturer or seller to the ultimate consumer. It includes creating the product or service concept, identifying who is likely to purchase it, promoting it, and moving it through the proper selling channels.
(a)
A location for buyers and sellers to meet and exchange goods and services, in return for money. This can be a physical location, as well as online.
(a)
A (a) is composed of a business' current and potential customers.
The number of individuals in a certain market who are potential buyers and/or sellers of a product or service (how many potential buyers).
(a)
Companies are interested in knowing the ____ ____ before launching a new product or service in that area.
(a)
Market size can be calculated by:
Potential customers
Revenue
Customers
Businesses
(a) customers/consumers are in a product's area but have yet to buy the product.
(a) are already consuming a certain product.
Percentage of the entire market that an individual business holds:
(a)
A measure in percentage terms of any increase in the size of the market.
(a)
The measure of the total value or volume of sales within a market.
(a)
Factors that influence market growth:
Fashion
Social trends
Consumer tastes
Economic growth
Being able to identify potential (a) in the growth or contraction of the market can provide a firm with a competitive advantage.
A measure in percentage in terms of change in volume or value of sales for a specific product or business over a period of time:
(a)
The proportion of the market held by an individual product or business:
(a)
Western Power and Water Corporation are both businesses with (a) market share. This is because the government does not allow any other businesses to work in this market segment.
In order to divide the market up into groups of consumers, the business will need to develop and understanding of its ____ ____.
(a)
A specific group of consumers at which the company aims its products and services:
(a)
1. Segment the market
2. Choose and describe the target market
3. Position and differentiate the product
These are the steps of....
Targeting the market
Segmenting the market
Analysing market share
Demographic segmentation
Splitting the market into small groups:
(a)
The market can be segmented into which of the following categories:
Psychographic
Demographic
Sociographic
Geographic
Why should a business take the time to segment the market?
Allows business owners to understand their customers, meaning potentially larger profits.
Offers a competitive advantage.
Short run production can use lots of specialised products tailored for different segments.
All irrelevant segments can be ignored and the focus can be directed at the segment.
What are some examples of demographic segmentation?
Opinions and thoughts of particular groups or labels.
Social class - your class is decided upon according to the occupation of the main income earner within a household.
Life cycle - considering the wants and needs of people depending on the phase of their life cycle.
Age, gender, race, nationality, etc
What are some examples of geographical segmentation?
Country, State, Continent, Suburb, etc
Climate
Population size
Urban, suburban, rural, etc.
What are some examples of psychographic segmentation?
Personality traits
Values, attitudes and beliefs.
Interests
Lifestyle
What is the difference between lifestyle psychographic segmentation and behavioural psychographic segmentation?
Lifestyle includes opinions, beliefs, attitudes, values, and interests.
Behavioural includes opinions, beliefs, attitudes, values, and interests.
Lifestyle includes how consumers treat products, such as usage, loyalty, special events, and convenience.
Behavioural includes how consumers treat products, such as usage, loyalty, special events, and convenience.
The way consumers act with or behave towards products:
(a)
What are the advantages of market segmentation?
Potential increase of market share, which can be more easily defended if targeted well.
Less profitable markets can be avoided.
Identify most effective means of marketing with limited funds.
It is easy to clearly categorise customers.
What are the disadvantages of market segmentation?
For a business to be effective in its market segmentation, it needs to do market research.
The wrong target market can be picked and the marketing therefore unsuccessful.
Ignorance of potential customers outside of the chosen market segment.
Market tastes and fashions are constantly changing, and it is not easy to categorise customers.
In the STP model, what does
S___
T___
P___
actually stand for?
(a)
Segmentations: identifying similar customer wants through market research before building a segment profile.
↓
Targeting: identifying which segment(s) to focus on.
↓
Positioning: differentiating a good to stand out from competitors in a segment based around price and perceived benefits.
(a)
When a business selects segment(s) of the market that they will focus their efforts on:
(a)
A firm will choose the segment with the best opportunity for:
Growth
Profit
Competitiveness
Accessibility
Fulfilling corporate objectives
Small segment of a larger overall market:
(a)
What are the advantages of niche marketing?
Less competition
Tailor-made products (USP)
Easy to keep up with fashions and trends
More accurate customer targeting
What are the disadvantages of niche marketing?
Smaller market which in turn means lower profits
Few economies of scale
Vulnerable to change in fashions and trends
Less accurate customer targeting
What are the advantages of mass marketing?
Large customer base
Added value
Economies of scale
Increased brand awareness
What are the disadvantages of mass marketing?
High competition
Less added value
Standardised products
High investment costs
Effectively marketing products to stand out from their competitors:
(a)
Looks at reasons why customers would select a certain business' products over that of its rivals:
(a)
