2.3 Market Segmentation Flashcards
1
Q
Market segmentation is…
A
Splitting the market for a product into different parts or segments
2
Q
Common ways customers are segmented…
A
Income
Occupation
Age
Location
Lifestyle
3
Q
What are demographics ?
A
Age
Gender
Race
Religion
Sexual orientation
4
Q
Market segmentation advantages…
A
Enables business to meet needs of customers effectively
Increased brand loyalty
Reduces price sensitivity around the brand
5
Q
Negatives of market segmentation…
A
Increased costs linked to research and product development
Potential for brand to loose its identity and sell a range of products too large
6
Q
Why is segmentation important…
A
Can reach the target customer more often and at a lower cost
E.g women’s perfume in beauty magazines
