1.2.3 Market segmentation

Question 1

What is market segmentation

Answer 1

Knowledge of different groups within a potential customer base can help the business target those customers by a variety of methods

Question 2

Market segmentation-location

Answer 2

A business may target its product at rural rather than urban areas

Question 3

Market segment - demographics

Answer 3

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

Question 4

Market segment - lifestyle

Answer 4

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

Question 5

Market segment - Holidays

Answer 5

A business may decide to segment the market according to lifestyle

Question 6

Market segment - Income

Answer 6

The population can be segmented according to annual salary (e.g. £15,000, £30,000 etc.) or type of job and social class

Question 7

Market segmentation-age

Answer 7

You can split the population into age groups

Question 8

Market Mapping

Answer 8

Can spot a gap in the market