1.2.3

Question 1

Market segment - Location

Answer 1

Market segment - Location.
A business may decide to
sell its product in just one
country, one region (like
Scotland), or in an even
smaller area.
A business may target its
product at rural rather
than urban areas.
A business may target its
products depending if the
market area is hot (Egypt)
or cold (Norway).

Question 2

Market segment - demographics

Answer 2

Demographics means statistical data relating to the population
and particular groups within it

Question 3

Market segment - lifestyle

Answer 3

Customers can be grouped
according to the way they
lead their lives and the
attitudes they share

Question 4

Market segment - Holidays

Answer 4

A business may decide to segment
the market according to lifestyle.
This may be a combination of; values
attitudes, perceptions, beliefs.
This may also include hobbies and
interests.

Question 5

Market segment - Income

Answer 5

Establishing a group’s disposable income is
important so that products can be targeted to
the relevant income group

Question 6

Market segment
Age

Answer 6

Market segmentation could be on age groups;
0-10
11-16
17-19
20-25
26-35
36-49
50+
Each age group will have different needs and
wants in terms of products and services

Question 7

Market Mapping – why?

Answer 7

1) Identify key features of competitors
2) Can help the business to make decisions about
products

Question 8

Market mapping – how?

Answer 8

In order to identify a gap in the market, it may
be useful for a business to construct a diagram
of where competitors are on two axes