1.

Market segmentation is the process of separating the key market

segments and modifying a single product to better meet the needs of one

or more of these segments.

Niche marketing is the process of developing a product to be advertised

to a certain group of people. The type of niche the product is being

developed for will determine features that the product will have to satisfy

the needs of that specific niche.

Some differences between niche marketing and market segmentation are

that in niche marketing focus on marketing a product to a single market

or market niche whilst market segmentation takes many market segments

into account when developing and researching the product to make it be

marketable to all those markets.

Another difference is that in segments in market segmentation are large

and attract several competitors whilst in niche marketing they only attract

a few competitors.

2. A benefit of niche marketing to Fruity Juice Co. Ltd. Is that customers in

a niche market are very brand loyal. This can be beneficial to the

company because having loyal customer base means that they are going

to keep buying the company’s product and are likely to spend more

money on other products the company has.

Another benefit is that focusing on one niche can help smaller companies

by allowing them to focus their limited resources into developing their

product to fit into a niche that may be overlooked by larger companies. In

doing so they can bring in customers from bigger companies who may

have been looking for what the company is providing.

3. Benefits

For Fruit Juice Co. Ltd., market segmentation could increase profitability

for the company by identifying certain attributes of each segment of the

market that the company can focus on instead of trying to appeal to all

segments. Market segmentation enables companies to target certain

segments and research said segments and fully understand how those

markets work to further ensure their success in these markets. They can

strategize advertisement campaigns for the chosen market segments to

target their needs and requirements for products to increase the likeliness

that the products will succeed. Doing this also allow for the business to

better use their limited resources when creating a product. Niching in a

single or few markets will make them not have to put out as much

resources as compared to trying to fit into a wider range of markets. This

allows them to save time and money on doing research and developing a

product to fit into those markets. This would also allow for them to focus

more time and energy into improving products that are already in niche

markets and trying to make them as favourable as possible. Doing all

these things can be done to try and improve the company’s profit

margins.
Another benefit is that market segmentation can also help you get to

know your customer base better and improve your product to more

appease them. Market segmentation enables a company to closer study

market needs and wants and potential customers which decreases chances

of a failed marketing campaign. Since the market research is done before

any advertising campaigns there is a greater chance of it being successful.

The company can strategize and plan out advertisement campaigns to the

needs of the potential customers for the specific market they are targeting.

A successful advertisement campaign can lead to an influx of new

customers who want to buy your products. If customers really like their

product, they may become loyal to the company and are more likely to be

repeat buyers.

Customer retention can help a business because once a business gets to

know their customer base, they can cater to their needs and the

customer’s experience with the company can be a positive one which can

further increase the retention rate of customers. Having a good product

can also help with customer satisfaction which is one of the most

important aspects that a business should try to improve upon. Higher

customer satisfaction has a lot of benefits, one of them being that they are

more likely to spread word of the business/ product to their family and

friends. In conclusion, getting to know your customer base at a high level

can improve how the business does finically because of several benefits

that come with trying to satisfy the customer base.

Drawbacks