1.3.5 : Market Segmentation

Question 1

What is market segmentation ?

Answer 1

The process of analysing a market and identifying the different segments - this is because markets can be divided in different segments - each segment consist of different customers with specific needs + wants

Question 2

What are the different types of market segmentation ?

Answer 2

Demographics , geographic , psychographic + behaviour

Question 3

What is part of demographic segmentation ?

Answer 3

Age , gender , marital status , family size , religion , education level , ethnicity , income , social economic status

Question 4

What is in geographic segmentation ?

Answer 4

Climate , country , regions + cities

Question 5

What is in psychographic segmentation ?

Answer 5

Social class , attitudes + personality characteristics , lifestyle , hobbies + interest

Question 6

What is in behaviour segmentation ?

Answer 6

Reasons for making purchases , frequency of purchases , time of purchase , brand loyalty , + emotional triggers

Question 7

What are the benefits of market segmentation ?

Answer 7

Specialist - understand the needs and wants of the customer - can become specialist in the segment
Behaviour - once you know your target market you can save costs by only targeting segment of customers with promotion

Question 8

What are the drawbacks of market segmentation ?

Answer 8

Segmentation is an imprecise science - not always up-to-date , reliable or always available
Just because you can identify a segment doesn’t mean you can target its customers
Markets are increasingly dynamic