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Olympian Ltd is a company that produces a range of high quality branded sportswear - Leaving Cert Business - Question B - 2009
Question B
Olympian Ltd is a company that produces a range of high quality branded sportswear. Following a lengthy market research process, the firm is now expanding its busine... show full transcript
Worked Solution & Example Answer:Olympian Ltd is a company that produces a range of high quality branded sportswear - Leaving Cert Business - Question B - 2009
Step 1
Explain the term 'market segmentation', illustrating your answer with reference to Olympian Ltd.
Answer
Market segmentation involves dividing up the market into clearly identifiable sections that have common characteristics. It allows a firm to identify who their target market is. For Olympian Ltd, they might segment the overall market for tracksuits either by demographic or psychological methods.
In this case, the teenage market has been identified as the target market for the Hoodie Tracksuit. This market can be further segmented into specific groups, such as males and females, as well as sporty and non-sporty types. Such segmentation helps Olympian Ltd to develop and support an effective marketing strategy tailored specifically for this group.
Step 2
Outline two benefits to Olympian Ltd of segmenting the market.
Answer
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Marketing strategy focus: By segmenting the market, Olympian Ltd can concentrate its marketing strategy on customers who are most likely to buy the Hoodie Tracksuit, ensuring that their promotional efforts reach the right audience.
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Cost-effective use of resources: Market segmentation allows Olympian Ltd to allocate resources more efficiently, avoiding costs associated with targeting markets that are unlikely to be profitable.