They influence the product or service they buy. ~ Market segmentation - The important thing is to influence your target group, to buy your products or services. ~ Bases of a segmentation * Geographic : Segmenting by content, country, city * Psychographic: Understanding the lifestyle and opinions of the consumers. * Demographic: Segmentation based on age, sex, marital status * Lifestyle : Segmentation based on state, neighborhood, region ~ Uses of geo-demographic systems to identify and reach target groups eg ACRON, MOSAIC * The ACORN is a geo-demographic tool the business use to identify and understand the UK population and local demand for products and services. They use the postcodes for demographic statistics and lifestyle variables to give business a guide to different regions.
Market segmentation Market segmentation is the method which allows business to help target the correct type of customers. It help identify the wants and needs of different customer groups, this then allows them to change or provide a product or service which provides all the customer’s needs within this group. There are four different types of ways a business can segment a market, these are: * Geographic – this is information about the location of a customer. This is very useful to a business as knowing where their
The value of socirtywill change continuously by advertising, service offerings, and retailing. Therefore the company need follow the fashion with marketing research or lead the fashion by advertising the new fashion. The value of people releate with consumer hehaviour. Question 2: Social class is determined by income, family background, and occupation. Social clas is hierarchical system, can measured by subjective, reputational and objective..
The mission formulation requires a clear identification of what portion of the potential customer base is the organization’s primary target. This is called market segmentation. Markets can be segmented in many ways: geographically, financially, ethnically, etc. HOW Deciding how the organization will achieve its mission may involve a marketing strategy, such as being the low-cost producer or the technological leader. It may involve a distribution system, such as regional warehouses or evening classes in factories.
Unit number: BSBDIV301A Work effectively with diversity Assessment number: 1 PART A 1. Keiran and Bella’s catering business a) the diverse community Keiran and Bella should look into demographic, geographic and physiographic while gathering information regarding the community they live in. It is important to know about the age, gender, the country of origin, qualifications as well as where people live, what associations people belong and how they think, behave. It is also necessary to know how much people earn in this area to sort out if they be able to afford their catering and if they want to use it for personal reasons or work. To find out it all they should go to the city council and make market research about demographic.
Economic Principles ........................................................................................................... 5 V. Conclusion .............................................................................................................................. 7 VI. References ............................................................................................................................. 9 1 I. Introduction There are many different procurement markets in the world. Public sectors often use the system of auctions in order to ensure competition within these markets. Buyers announce their need of a specific good and the date of auction whereby the supplier with the smallest bid gains the contract.
Lessons learned from this topic and case study: 1. Managers need to be able to estimate the costs of different responsibility centres and products to assist with monitoring the performance of different departments and also to assist with decision making about product pricing, profitability of individual products, assist with decisions when making changes to product lines and various other managerial requirements such as controlling costs and valuing inventory for financial statements. 2. Dividing the business into cost objects such as departments or products can assist with creating greater accuracy when allocating costs to each ‘cost object’. 3.
Dividing the market into variables such as age, race, gender, income, lifestyle, occupation and nationality. 2.4 Psychographic Segmentation Based on psychology and demographics, consumers are divided according to their lifestyle, social class and personality. 2.5 Behavioural Segmentation Actually based on the behaviour of the consumer. Divided by consumers buying attitudes and practices, how they spend their time and money and use and response to a product or service. 3.1 Geographic segmentation in First Bus Greater Glasgow First Bus Greater Glasgow has segmented their market by population, operating service routes within higher populated areas where the people to job ratio means that many of the population of these areas have to travel out with their own towns and areas to get to work, school, college and university etc.
Geographically, the products are made available to the customers through outlets. Demographically, the middle classes and upper classes are allured towards the brand. Psychographic segmentation indicates interest towards the brand. At last, the behavioral segmentation is made out on the grounds of brand loyalty, user’s rate and satisfaction so derived from it. Target markets for the product are between age group of 6-60 years of age.
Lesson 7 Essay questions 1. What are the differences between cost-based and value-based pricing? When creating prices for your business begins you have to take into consideration of many different things. How much did it cost to produce your product or service? Or, how much people are willing to spend for your good or service?