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Segmentation, Targeting and Positioning - Coggle Diagram

- - - - Where a business targets a smaller segment of a larger market, where customers have specific needs and want
      - Pros and Cons
        
        Pros: Less competition, clear focus, build up specialist skills, can charge higher price, higher profit margins and customers tend to be more loyal
        
        Cons: Lack of economies of scales, vulnerable to market crash, overdependence on a single product and likely to attract competition if successful
    - - Where a business target the biggest part of the market, where there are many similar products offered by competitors
- - - - Occasions
      - Benefit sought
      - Knowledge
      - Usage
      - Loyalty
      - Attitudes
  - - - Allocate resources at where business can succeed
      - Help new product development
      - Better targeting
    - - Data not always up-to-date
      - Identify segment doesn't mean you can approach the clients
      - Markets are increasingly dynamic-fast changing
- - - - Help spot gaps in the market
      - Useful for analysing competitors
    - - Just because there's a gap, it doesn't mean that there's demand
      - Not reliable