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Conflict between objectives can arise   Within the marketing department       E.g. a price cut can make it difficult to ...
Potential ConflictWith Accounting and Finance Aims to control costs – market research and promotion is very  expensive an...
Analysing Approach   The pros and cons for each of the    approaches to the business                                     ...
Market Segmentation
Market Segmentation and the reasons forBreaking down a large market into subgroups or sections that are likely to         ...
Ways to segment the market               Where people live. People from different areas of the countryGeographical   respo...
Ways to segment the market               Where people live. People from different areas of the countryGeographical   respo...
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Functions of business review and market segmentation.

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Transcript of "Functions of business review and market segmentation."

  1. 1. Conflict between objectives can arise Within the marketing department  E.g. a price cut can make it difficult to increase expenditure With the objectives of the other departments or functions…
  2. 2. Potential ConflictWith Accounting and Finance Aims to control costs – market research and promotion is very expensive and impossible to accurately measure the returnWith HRM Marketing aims to create demand which leads to greater staffing requirements, HRM prefer stability whereas the marketing department aims to stimulate changeWith Production (Operations Mngt) Working together is essential – the marketing dept cannot promise goods/services the production dept cannot deliver whereas the productions dept cannot create products/services there is no demand for (market research co-ordinated by the Marketing Function Led marketing dept solves this problem) Production Function Led Product Orientation Customer Orientation The firm produces a product and then The firm considers what the public tries to convince the public they want before trying to produce it want/need it
  3. 3. Analysing Approach The pros and cons for each of the approaches to the business Product Orientation Customer Orientation The firm produces a product and thenThe firm considers what the public tries to convince the public they want before trying to produce it want/need it
  4. 4. Market Segmentation
  5. 5. Market Segmentation and the reasons forBreaking down a large market into subgroups or sections that are likely to respond to products in different ways Market research identifies different groups (segments) of people within the market These groups can then be targeted individually increasing the effectiveness of the firms marketing (e.g. promotional campaigns, product versions) Increasing effectiveness means reducing cost and maximising return Gaps in the market can be found Niche markets can be found (a smaller market within the whole [mass] market made up of a specific segment of the market) Enhances the development of marketing strategies (plan to achieve marketing objectives)
  6. 6. Ways to segment the market Where people live. People from different areas of the countryGeographical respond differently to products. Interests and hobbies and how these impact of the productsLifestyle they demand. Firms often product numerous versions of the products whichAge appeal to different age ranges. Products aimed at both genders can be specifically tailoredGender through packaging or styling. Occupations. However incomes and products purchased areSocial Class not always in direct relation. A (upper class: doctors, lawyers) – E (unemployed: pensioners, on benefits). Type of housing they live in. ACORN: A Classification ofResidence Residential Neighbourhoods. Allows firms to target those living in flats differently to those in large detached houses. Spending patterns. Certain groups behave differently onBehaviour different days.
  7. 7. Ways to segment the market Where people live. People from different areas of the countryGeographical respond differently to products. Interests and hobbies and how these impact of the productsLifestyle they demand. Firms often product numerous versions of the products whichAge appeal to different age ranges. Products aimed at both genders can be specifically tailoredGender through packaging or styling. Occupations. However incomes and products purchased areSocial Class not always in direct relation. A (upper class: doctors, lawyers) – E (unemployed: pensioners, on benefits). Type of housing they live in. ACORN: A Classification ofResidence Residential Neighbourhoods. Allows firms to target those living in flats differently to those in large detached houses. Spending patterns. Certain groups behave differently onBehaviour different days.
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