What marketing is and why it matters
Marketing is the process of identifying, anticipating and satisfying customer needs profitably. It is wider than advertising — it covers finding out what customers want, then getting the 4 Ps right. It helps a business satisfy needs so products sell, build and keep a customer base (raising sales and revenue), compete through a unique selling point (USP), and respond to market change. It keeps the product matched to what customers want.
Segmentation and targeting
Market segmentation divides a market into groups of customers with similar needs, so a firm can target each with a suitable marketing mix. The four bases: demographic (age, gender, life stage), geographic (where they live), income (earnings and spending power) and lifestyle (interests and values). Segmentation divides the customers up; targeting CHOOSES which segment(s) to sell to — keep them separate. It matches the 4 Ps to a group and avoids waste.
Mass vs niche, and responding to change
A MASS market targets the whole market with a broad, standardised product: high volume, low margins, intense competition. A NICHE market targets one small specialist segment with a tailored product: lower volume but often a higher margin, fewer rivals and stronger loyalty. Neither is automatically better. Because customer needs, competitors and technology change, a business must respond — changing the mix or entering a new segment — or lose customers to rivals.
Drawn from real examiner reports.
Describing segmentation, not applying it
A common error is to give a textbook description of segmentation without applying it to the firm. On State/Outline the mark needs context: a real detail from the extract (a product, a customer group, a competitor). On Analyse, do not just list the four bases; pick the base that fits THIS firm (e.g. income for a luxury product) and analyse the benefit.
Market share vs growth vs size
Three measures get mixed up. Market SIZE is how big the whole market is. Market GROWTH is how fast the whole market changes. Market SHARE is the slice of the whole market ONE business holds. They are independent: a firm can hold a large SHARE of a shrinking market, or a small share of a fast-GROWING one. Asked about one, do not answer about another.
Segmentation vs targeting
Segmentation and targeting are two steps, not the same thing. SEGMENTATION is dividing the whole market into groups of customers with similar needs. TARGETING is then CHOOSING which segment(s) to actually sell to and design a marketing mix for. A business segments first, then picks its target segment. Answering about one when the question asks about the other loses the mark.
A niche market is not a small firm
Niche versus mass is about the SEGMENT a business targets, not the size of the business. Large firms often run niche brands (e.g. a premium range for a small high-income segment) alongside mass ones. So a big company can serve a niche, and a small firm can attempt the mass market. Do not assume niche means a small business.
Mixing up the four segmentation bases
Keep the four bases distinct. DEMOGRAPHIC splits customers by age, gender or life stage; INCOME by how much they earn or can spend; GEOGRAPHIC by where they live; LIFESTYLE by interests, values and how they live. Do not label an income split as demographic — name the base that actually matches the grouping the question describes.
A niche market is not always worse
Two beliefs to drop. A niche market is not automatically worse than a mass one — a niche faces fewer rivals and can charge more and build loyalty, while mass means high volume but fierce competition; neither is simply better. And segmentation is NOT a word for advertising — it means grouping customers so the WHOLE mix can be targeted; promotion is only one of the four Ps.
Match the command word
Answer the command word. Outline = a point applied to the named firm. Analyse = a cause-and-effect chain for THIS firm, with no judgement. Justify/Evaluate = weigh the options and decide. Analysing is not evaluating — do not stop at a chain when asked to judge.
State and Outline need context
On State and Outline market questions, give the point AND tie it to the named business with a specific detail — a product, a customer group, a competitor. Naming the business alone is NOT context and earns only the knowledge mark, not the application mark.
AO4: reach a supported judgement
On a 9-mark Justify (e.g. mass vs niche), choose ONE course clearly and say why it is better for THIS business. On a 12-mark Evaluate, weigh both sides and conclude which outweighs the other. A two-sided list with no decision stays mid-band; the AO4 marks need a judgement.
Marketing is the process of identifying, anticipating and satisfying customer needs in a way that is profitable. It is much wider than advertising — it covers finding out what customers want, then getting the product, price, promotion and place right.
Why it matters to a business:
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