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theme 1 booklet 2 - Coggle Diagram
theme 1 booklet 2
market segmentation
markets cna be divided into segments, each segment is made up of consumers that have similar characteristics
if a business can identify their product or service and who it appeals to, they can then target advertising and promotions
GEOGRAPHICAL- region, unban/rural
DEMOGRAPHIC- age, income, social class, religion
PSYCHOLOGICAL- attitudes, opinions lifestyle,
BEHAVIOURAL- loyalty, usage rate
BENEFITS- way to differentiate product from competition and enable them to charge higher prices
less wasteful of resources than trying to sell product to everyone - product can be adapted to meet needs
less expensive to develop product that attempt to meet more distinct needs
DRAWBACKS- not everyone in each segment behaves the same way.
all people the same age don't necessarily like similar products
can be difficult to reach chosen segment with marketing e.g. what media use to attract primary teachers
secondary research
a collection of information that already exists that has been collected for another purpose but that business can use
also known as desk research like government sources, magazines, tv and radio, social media
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internal data may be collected from exisitng business documents e.g. sales figures, annual report and accounts , loyalty cards to help frims make decsions
external data is outside of the business collected by other organisations e..g from competitiors, internet
ADVANTAGE- easy and cheap to collect makes it useful for smaller business
already available so quick decisions can be made
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primary market research
research that the person conducts itself going directly to that source e.g survey or questionnaires, interviews observations
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DISADVANTAGE-time consuming, expensive, could be inaccurate information because could be asking friends making them give a positive answer , didn't ask a wide range of people
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product orientation
when a business focuses on the production process and the product itself and puts effort into products which believes consumers will want to buy
needed a lot of research
usually takes place when there is little consumer knowledge so will base decisions of what they already know of that product e.g. dyson
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QUALITATIVE RESEARCH
collecting data about attitudes and beliefs it is detailed information on why they do and don't buy what they want