Edexcel Business A Level Revision

Market Positioning - the place a product occupies in customer minds relative to competing products Businesses create value for customers by making two key decisions : DECISION 1 : CHOOSE WHICH CUSTOMERS TO SERVE This involves two elements: • Market Segmentation (analysing the different parts of the market/ subgroups with similar needs and wants) • Targeting (deciding which market segments to enter) DECISION 2 : CHOOSE HOW TO SERVE THOSE CUSTOMERS This also involves two important parts of marketing strategy: • Product differentiation (what makes it different from the competition) • Marketing Positioning (how customers perceive the product) Value proposition - how to compete in the segments? ☆Having analysed the structure and chosen which segments to target the next stage in the marketing strategy is to decide how to compete in the segments. Marketing people call this the value proposition. ☆It is important to remember the market posi...

Market Segmentation - the process of dividing a market into smaller sections which contain customers with similar needs and wants Market segmentation splits up a market into different types of segments to enable a business to better of target it's products to the relevant customers. Segments are usually measured in terms of sales volume or valu e Segmentation is possible because in almost all markets there are differences in factors such as: • Customers needs and wants • How customers buy • Location of customers • Knowledge & experience of customers Recognising and understanding these differences are the first Steps in an effective approach to market segmentation. ☆MAIN BASES OF SEGMENTATION☆ DEMOGRAPHIC > dividing a market into segments based on demographic variables such as age, gender, family, lifestyle, religion, nationality, ethnicity, occupation, Socio-economic group. BEHAVIOURAL > dividing a market into segments based on the different ...