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Analyse the relationship between market segmentation and marketing strategies. - HSC - SSCE Business Studies - Question 26 - 2019 - Paper 1
Question 26
Analyse the relationship between market segmentation and marketing strategies.
Worked Solution & Example Answer:Analyse the relationship between market segmentation and marketing strategies. - HSC - SSCE Business Studies - Question 26 - 2019 - Paper 1
Step 1
Market Segmentation
Answer
Market segmentation involves dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics. This helps businesses tailor their products and marketing strategies to meet the specific needs of different segments. Common segmentation methods include demographic, geographic, psychographic, and behavioral segmentation.
Step 2
Product/Service Differentiation and Positioning
Answer
To effectively reach target segments, companies must differentiate their products or services. Positioning refers to how a product is viewed in relation to competitors. A clear positioning strategy allows businesses to market their offerings effectively within each segment.
Step 3
Marketing Strategies
Answer
Marketing strategies must align with the identified market segments. For instance, targeting high-income consumers may involve premium pricing and luxury marketing tactics. In contrast, a strategy aimed at budget-conscious consumers would utilize penetration pricing and value promotions.
Step 4
Integration of Segmentation and Strategies
Answer
The relationship between market segmentation and marketing strategies is crucial. Effective customer targeting leads to tailored marketing messages that resonate well with specific segments. This integration enhances the likelihood of product acceptance and brand loyalty.
Step 5
Case Study Reference
Answer
Referencing contemporary business cases can illustrate how companies have successfully implemented segmentation strategies. For example, Nike uses demographic and psychographic segmentation to cater its marketing campaigns to athletes of all ages and skill levels.