coursework - ro65 - lo1 |
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Mark band 1
Provides a limited explanation of market segmentation, including a few segmentation techniques and demonstrating a basic understanding of the benefits to a business. [1 - 2] Describes limited features of a specific customer profile using market segmentation and partly applies the knowledge to the requirements of the business challenge. [1 - 2]
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Mark band 3
Provides a clear explanation of market segmentation, including some segmentation techniques and demonstrating a reasoned understanding of the benefits to a business. [3 - 4] Describes some features of a specific customer profile using market segmentation and mostly accurately applies the knowledge to the requirements of the business challenge. [3 - 4]
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Mark band 3
Provides a comprehensive explanation of market segmentation, including a full range of segmentation techniques and demonstrating a thorough understanding of the benefits to a business. [5 - 6] Describes in detail the features of a specific customer profile using market segmentation and accurately applies the knowledge to the requirements of the business challenge. [5 - 6]
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LO1 Theory review
> A market is a place where buyers and sellers come together to trade goods and services
> A businesses target market is the group of customers at which a good or service is aimed
> A businesses customers are the people to whom a business sells its goods and services
> Market segmentation is dividing a market into segments of customers with similar needs and wants
> A customer need is the reason they buy the good or service
> A customer want is anything that make the good, service or the buying experience better for them
> The needs and wants of customers will be different, even within the same market
> A businesses target market is the group of customers at which a good or service is aimed
> A businesses customers are the people to whom a business sells its goods and services
> Market segmentation is dividing a market into segments of customers with similar needs and wants
> A customer need is the reason they buy the good or service
> A customer want is anything that make the good, service or the buying experience better for them
> The needs and wants of customers will be different, even within the same market
Task 1: In your own words explain what we mean by a market and market segmentation. Use all the key terms given above in your response.
LO1 Theory review B
> Businesses usually segment their market by customers age, gender, occupation, income, geographic location, lifestyle/hobbies
> The benefit to businesses segmenting their market include increased customer retention, increased sales, ability to target specific groups, more market share, helps prevent loss
> How a business segments the market will depend on the industry and brand, e.g. cloths = gender, sports cars = income, magazines = age
> The benefit to businesses segmenting their market include increased customer retention, increased sales, ability to target specific groups, more market share, helps prevent loss
> How a business segments the market will depend on the industry and brand, e.g. cloths = gender, sports cars = income, magazines = age
Task 2: Explain how businesses segment their market and the benefits to the business. Give five examples of real businesses stating how they segment their market and the benefits this brings to the business.
LO1 Application review A
> Important factors for a local pizzeria to consider when segmenting the market include the income of local customers, customers dietary requirements, and lifestyle ad interests of local customers.
> You may also wish to consider if the customers are interested in sourcing local ingredients, environmental considerations, and links to local sports teams or personalities.
> You may also wish to consider if the customers are interested in sourcing local ingredients, environmental considerations, and links to local sports teams or personalities.
Task 3: Describe the most important factors for a local pizzeria when segmenting its market, stating which factors you are going to use and how this benefits the business.
LO1 Application review B
You need to apply the following theory to the Perfecta Pizza case study:
> Market segmentation
> Customer profiles
> Market segmentation
> Customer profiles
Task 4: State how a pizza restaurant, such as Perfecta Pizza should segment their market and why these factors are the most important to Perfecta Pizza.
E.g. Location as customers will not be willing to travel far for pizza as there are so many competitors near by.
Task 5: State which segment Perfecta Pizza should target and why you have chosen this segment as your target market.
E.g. Perfecta Pizza should target young families in the local area who have an average household income. This is because Pizza is relatively inexpensive so a family on a modest income will be able to afford to eat out at Perfecta Pizza quite often. Children are also usually keen on pizza and prefer it to other types of food. It also helps that pizza can easily be customised to suit someone's tastes and special dietary requirements.
Task 6: Create a detailed customer profile. An example of this can be seen in the below image.
E.g. Location as customers will not be willing to travel far for pizza as there are so many competitors near by.
Task 5: State which segment Perfecta Pizza should target and why you have chosen this segment as your target market.
E.g. Perfecta Pizza should target young families in the local area who have an average household income. This is because Pizza is relatively inexpensive so a family on a modest income will be able to afford to eat out at Perfecta Pizza quite often. Children are also usually keen on pizza and prefer it to other types of food. It also helps that pizza can easily be customised to suit someone's tastes and special dietary requirements.
Task 6: Create a detailed customer profile. An example of this can be seen in the below image.