1.2.3 Market segmentation

Question 1

Location

Answer 1

A business may decide to
sell its product in just one
country, one region (like
Scotland), or in an even
smaller area

Question 2

demographics

Answer 2

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

Question 3

lifestyle

Answer 3

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

Question 4

Holidays

Answer 4

A business may decide to segment
the market according to lifestyle

Question 5

Income

Answer 5

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

Question 6

Social Class

Answer 6

Social class segmentation categorises individuals according to their
occupation, a business may decide to target ABC1 or DE
consumers, depending on the product.

Question 7

Age

Answer 7

Each age group will have different needs and
wants in terms of products and services

Question 8

how does Market mapping work

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