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4.2 MARKETING PLANNING (2) (HOW ORGANISATIONS CAN DIFFERENTIATE THEMSELVES…
4.2 MARKETING PLANNING (2)
NICHE MARKET
a small and specific part of a larger market
NICHE MARKETING
Identifying and exploiting a small segment of a larger market by developing products to suit it
MASS MARKET
A market for products that are often standardised and sold in large quantities
MASS MARKETING
Selling the same products to the whole market with no attempt to target groups within it
ADVANTAGES
help small firm to survive
high profit margins & high prices; unexploited market- exclusive product
create status and image by large firms
ADVANTAGES
Run fewer risk than niche market because have more in targeted market
substantially lower average costs of production
PRODUCT POSITIONING
Consumer perceptions of each of a group of competing products in respect of two product characteristics
product position map
stage 1
identify the features of the products
price
quality of materials used
perceived image
level of comfort offered
stage 2
qualitative market research
position of each of the competing products according to consumers' perception of them
Unique selling point/proposition (USP)
A factor that differentiates a product from its competitors, such as the lowest cost, the highest quality or the first-ever product of its kind; a USP could be thought of as ' what you have that competitors dont't
ADVANTAGES
Effective promotion
opportunities to charge higher prices due to exclusive design and service
free publicity
attract customers
HOW ORGANISATIONS CAN DIFFERENTIATE THEMSELVES AND THEIR PRODUCTS FROM COMPETITORS
Low/lowest prices
Trust
ethical stance
convenience
product features