3.3c STP: Market Segmentation (2)

Question 1

Market segmentation is used for

Answer 1

• Better matching of customer needs
• Enhancing profits
• Retaining more customers

Question 2

Advantages of market segmentation

Answer 2

• Allows the business to find their target market
• Allows the business to grow into new market areas
• Increases market share

Question 3

Disadvantages of market segmentation

Answer 3

• Lack of information and data
• Difficulty in measuring and predicting customer behaviour
• Possibility of ignoring potential customers