3.3c - STP: Market Segmentation (2)

Question 1

Advantages of market segmentation:

Answer 1

• Find target market
• Grow into new market areas
• Increase market share
• Better match customer needs
• Add value

Question 2

Disadvantages of market segmentation:

Answer 2

• Difficult if lack of information and data
• Difficult to measure and predict customer behaviour
• Can be hard to reach customer segments once identified
• Possibility of ignoring potential customers