1.1 Market Segmentation Flashcards
1
Q
What is market segmentation?
A
When a business divides a market into different sectors/ segments made up of customers with specific needs.
2
Q
What could a business concentrate on?
A
One product for one particular segment,
Different products for one segment,
Nearly all customers.
3
Q
How can a market be segmented
A
Demographic
Geographic
Income
4
Q
Benefits of market segmentation:
A
Promotion and advertising
Meeting customer needs
Marketing costs
Most profitable segment
Decision making
5
Q
Drawbacks of market segmentation:
A
Imprecise
May not be profitable or attainable
Dynamic markets and segments stereotyping
