14806988
Description
Mind Map by Rhianna Nicoll, updated more than 1 year ago
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Created by Rhianna Nicoll
over 5 years ago
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5.2 - Segmentation
- key words
- sales volumes - measures the number of items sold
- sales value - measure the revenue generated
- segmentation - occurs when a market is divided
into different groups of needs and wants
- sales volumes - measures the number of items sold
- the market
- the marketing function of the business is
interested in the background of potential
buyers of products
- Market means the focus is on what demand there is
for a products what the sales are
- the size of the market looks at how big the
market is in terms of sales, known as sales
volume and how big it is in terms of sales value
- e.g. the sales volume for a product in one
year is 1,000 with a sales value of £5,000 i.e.
each product was sold for £5
- e.g. the sales volume for a product in one
year is 1,000 with a sales value of £5,000 i.e.
each product was sold for £5
- the growth of the market will compare the sales
volume in one year with another to see if market
is growing or contracting e.g. if 2016 was 1,000
and 2015 was 500 there is a growth by 100%
- marketing managers try and understand what is
happening in different parts of the market as well
as a whole
- the marketing function of the business is
interested in the background of potential
buyers of products
- calculating market growth
- change in market size/original market x100
- if the market was worth £10,000 but
is now worth £12,00 this year then it
would be 12,000-10,000 = 2,000
- market growth = 2,000/10,000 x 100
- 20%
- 20%
- market growth = 2,000/10,000 x 100
- change in market size/original market x100
- What is segmentation?
- occurs when a market is divided into groups e.g. the car
market is split into groups of buyers: family cars, sports
cars and 4x4
- Benefits
- business being able to develop products
that closely meet customer needs e.g.
economical city cars
- allows different customers to be targeted precisely in
advertising and price e.g. city car drivers may want a
car under a certain price and mainly watch tv adverts
- business being able to develop products
that closely meet customer needs e.g.
economical city cars
- occurs when a market is divided into groups e.g. the car
market is split into groups of buyers: family cars, sports
cars and 4x4
- Ways of segmenting a market
- gender
- age e.g. chocolates based on cartoons
for kids and luxury for adults
- location e.g. subway in India with
vegetarian options due to local preferences
- income e.g. hotel rooms in 5-star
hotel are more expensive to others
- gender
- targeting
- once the business has identified the
relevant segments of the market it
will decide which ons to focus on
- it needs to consider if it can make enough
money as the segment may be unprofitable
- it needs to consider if it can compete
with skills and resources
- it will need to consider the opportunity cost
e.g. are there better alternative segments?
- it will need to consider the opportunity cost
e.g. are there better alternative segments?
- it needs to consider if it can compete
with skills and resources
- it needs to consider if it can make enough
money as the segment may be unprofitable
- once the business has identified the
relevant segments of the market it
will decide which ons to focus on
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