Market Segments andMarketing Mix

Christie and Ryan

Market SegmentationsMarket segmentation involves dividing a broad

target market into subsets of consumers who have common needs (and/or common desires)

Depending on the society. These subsets may be divided/segmented by criteria such as:

- Age

- Gender

- other distinctions such as location or income.

Segmentation-Geographic segmentation -> Geographic location

-Demographic segmentation -> Based on variables

-Psychographic Segmentation -> Lifestyles

-Behavioural Segmentation -> Based on responses

-Occasions -> Occasions of use

"Positive" market Segmentation -> Similar wants or needs

Marketing MixThe marketing mix is a business tool used in

marketing to determine a product or brand's offering and is often synonymous with the Four Ps:

ProductA product is seen as an item that satisfies a

consumer’s needs or wants. It can be a tangible good or an intangible service.

The product a business plan to supply must:- Satisfy the wants or needs of customers- Be of an appropriate design that fulfills its functions and appeal to customers

- Branding -> Product identification by a unique name

- Trade marks -> Registered symbol or a logo

- Packaging -> Container or wrapping of a product

- Product range -> Producing different types of product to reach different parts of market

Product Differentiation

Product Life Cycle

Priceis the amount that a customer pays for a product

it’s of utmost importance as it determines the company's profit,

There are different Pricing Strategies that can be adopted to sell a product

Competitive -> Pricing based on competitors’ prices

Penetration -> Pricing lower than competitors’ prices

Promotional -> Pricing to attract customers away from competitors

Predator -> Pricing Low enough to drive competitors out of market

Cost-Plus -> Adding a percentage for profit mark up

Loss leader -> Pricing less than its costs

Price leader -> Pricing like how others have priced

Price skimming -> Pricing high enough for new products to cover production costs

Pricing Strategies

PlaceRefers to providing the product at a place which

is convenient for consumers to access

Factors:

-Legislations

-Environment

- Workforce

- Competitors - Costs

- Access to suppliers and customers

-Infrastructures

Channels of Distribution-Manufacturer -> Produces the products

-Wholesaler -> Buys products in bulk from the manufacturer

-Retailer -> Outlet that sells products to the customers

Promotion

Represents all methods of communication that a marketer may use to provide information to different parties about the product.

Process of a successful promotion:Awareness -> Information -> Desire ->

Action

Above the line promotions-> using media to advertise product.

Tv, radios, websites

Below the line promotions -> Promoting product without a media. Special offers, sponsorships

Public relations -> keeping the product in the public eye in ways other than promotion

Types of Promotion

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