Unit 3 Assignment 3

1
BTEC Business Level 3

• Unit 3 Assignment 3
• P5,

2
Identifying customers in consumer markets

• Customers and Consumers
• A person who purchases a good or service is a
  customer.
• A person who uses the good or service is a
  consumer.
• Customers should be defined in terms of
• What they want in terms of price
• What distribution is most convenient
• What communication channels they can be reached
  through
• What they want from the product
• Buyers
• As well as individual buyers there are also B2B
  markets where businesses will buy too. E.g. A
  corner shop buying from Bookers Wholesalers.

3
Market Segmentation

• All markets can be divided into segments, each
  segment has its own profile which has similar
  characteristics.
• Market Segmentation allows a business to improve
  the product or service offered to the customers,
  this then increases demand for the product and
  meets the customers needs more closely.
• Segmentation can be based upon the following
• Geographic
• Psychographic
• Socio-cultural
• Demographic

4
ACORN and MOSAIC

• A business can segment by two tools which allow
  segmentation.
• ACORN- is a geo-demographic tool that allows a
  business to identify and understand the UK
  population and local demand for products and
  services.
• MOSAIC classifies households into 12 groups based
  upon households that share certain characteristics

5
B2B Segmentation

• Business markets are segmented in a different way
  to individuals
• Size and Value
• Region
• Sector- Private, public, Voluntary
• Product and industry.

6
P5- Plan

• Introduction Explain why a business may want to
  segment their market- how useful is it to
  businesses.
• Explain methods of segmentation
• Geographic
• Demographic
• Psychographic
• Lifestyle
• ACORN
• MOSAIC
• Reasons for choosing target groups
• Accessibility
• Current and future prospects of groups
• Profitability
• Ability to service the customer group
• Fits in with organisations mission.
• Choose six different products and explain the
  customer profile. You should include at least one
  B2B product.