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Business Studies IGCSEPDF 95
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Examples
Competition
Economies of
Scale
Risk
Mass Marketing
Type
Niche Marketing
Basis
Low (fewer firms)
Limited
Advantages
- Less competition
- Higher profit margins
- Focused on one
segment
- Large sales volume
- Economies of scale
- Spread of risk
High – dependent on one
market
Versace, Rolex
Examples
Limitations
- High production costs
- Small market size
- Risk if demand drops
High (many firms)
Significant
- High competition
- Difficult to differentiate
- Cannot charge premium
prices
Lower – spread across
markets
Apple, Coca-Cola
A market segment is a subgroup of a larger market where consumers share similar
characteristics or preferences.
Market segmentation involves dividing a market into these groups to better target and
satisfy their needs.
Example: PepsiCo markets Diet Pepsi toward health-conscious consumers.
Definition
Advantages & Limitations
Common Bases for Segmentation
7. Market Segmentation