1.2.3 Market segmentation Flashcards
Name 4 types of ways to segment the market
-Income
-Gender
-Location
-Lifestyle
How do you segment the market using Gender
-Offer Products Based on Gender
For Example : T-shirts -in different colures,shapes,sizes
How do you segment the market using Location
-Offer Products Based on The Location
-For Example :Mcdonalds in Japan
How do you segment the market using Lifestyle
-Offer Products Based on The Lifestyle
-For Example :Holidays and Spa
How do you segment the market using Income
-Offer Products Based on The Income
-For Example :Cars Different ranges of Cars
Explain How a Small Business Could Use Gender To Segment The Market? (3 Marker)
A small business could use market segmentation by using gender (P) Different products can be targeted to customers depending on if they are male or female (S) This will lead to a business being able to meet the needs of those particular customers (S)
Explain How a Small Business Could Use Income To Segment The Market? (3 Marker)
A small business could segment a market using income (P) People with a higher level of income are more likely to buy luxury goods (S) This means a business could develop a higher quality product to target these customers (S)
Explain How a Small Business Can Use Age To Segment The Market (3 Marker)
A small business could use market segmentation by using age (P) Different products can be targeted to customers depending on their age i.e. if they are 18 or older (S) This will lead to a business being able to meet the needs of those particular customers (S)
Explain How A Market Map Helps a Business (6 Marker)
Market mapping allows a business to spot gaps in the market (P) This is because it shows the goods and services offered by competitors (S) This will allow the business to reach a wider range of customers because it is offering something special (S) As a result, demand for the firms goods and services should increase (S)
