Target Markets slide 12

Undifferentiated Marketing Also known as Mass Marketing Where products appeal to the majority of consumers Marketing is directed at all consumers. E.g. Milk appeals to consumers of all ages, gender, income group as it is seen as an essential item – no need to spend to much on advertising. slide 12

Target Market Where one product is sold to the entire market. Tend to be a high volume of sales Manufacturers are then able to benefit from economies of scale. Usually a lot of competition in the market. slide 12

Differentiated Marketing When businesses offer different products to different groups within the total market. Alter products to suit the different needs of different consumers. E.g Scotrail offer train services. It charges different prices for the same journey for different people. Cheaper fares are available for off-peak which will appeal to older and younger people. First and second class is available on the same journeys. slide 12

Market Segmentation Splitting of market into different groups who have similar needs and wants. Allows businesses to produce goods and services specifically for that group. Able to closely meet the needs of customers to more likely make a sales. Target consumers who are more likely to want and pay for that product allowing costs to be reduced. slide 12

Identifying Segments Depend upon the product a business will have for sales. Based on tastes/preferences of consumers. E.g. Scottish country dancing appeals mostly to females of various ages. Producers of dancing shoes are more likely to advertise in publications which women read. slide 12

Other examples Age – Smash Hits Gender – Heat Socio-economic – The Daily Record Education – The Scotsman Income – Ski Monthly Others – household, geography or religion, occupation slide 12

Niche Marketing Aiming a product at a particular, often small, segment of the market where consumers needs and wants are clearly identified. Usually a local market or a small national market. slide 12

a niche market is a narrowly defined group of potential customers. A business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers.  a niche market is a narrowly defined group of potential customers. Example: instead of offering cleaning services, a business might establish a niche market by specialising in blind cleaning services. slide 12

Advantages Vs Disadvantages Take advantage of small markets that are ignored by other firms. Avoid competition in the short term Focus on the needs of the customer giving you advantages over businesses that target a wider market. If the business is successful it can attract competition. The market may be too small to accommodate two or more firms. Large firms deciding to enter the market can force other businesses out. slide 12