5.2 - segmentation

Question 1

sale volume

Answer 1

Measures the number of items sold (number)

Question 2

sale value

Answer 2

Measures the revenue generated (turnover)

Question 3

segmentation

Answer 3

Occurs when a market is divided into different groups of needs and wants

Question 4

The marketing function of the business

Answer 4

is interested in the background of the potential buyers of products.

Question 5

market

Answer 5

focus is on what demand there is for a product and what the sales are.

Question 6

size of the market

Answer 6

how big the market is in terms of sales,and how big it is in terms of sales value.

Question 7

growth of market

Answer 7

compare the sales volume in one year with another to see if the market is growing or contracting.

Question 8

what does a market manager do?

Answer 8

understand what is happening in different parts of the market as well as the whole market.

Question 9

how do you calculate market growth

Answer 9

Market growth = change in market size over original market size x 100
-Anything in brackets in question = minus

Question 10

benefits of segmentation -2

Answer 10

-develop products that more closely meet the needs of
customers
-different customers to be targeted more precisely
both in terms of advertising and price

Question 11

different ways of segmentation -8

Answer 11

By gender
By age
By location
By income (price)
By body size+ height
By hair type
By Ethnicity

Question 12

targeting

Answer 12

Once the business has identified the relevant segments of the market it will decide which ones to focus on.

Question 13

what to consider when targeting? -3

Answer 13

-whether it can make enough money.
-compete effectively with the skills and resources it will use.
-consider the opportunity cost.