5.2 Segmentation

Question 1

What is segmentation?

Answer 1

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

Question 2

What are different types of segmentation?

Answer 2

• Gender
• Age
• Location
• Income

Question 3

When will a business will use gender as a method of segmentation?

Answer 3

Shoe manufacturers will produce a variety of products for customers of different genders

Question 4

When will a business will use age as a method of segmentation?

Answer 4

Elderly people may require quality and comfort in their clothing, while younger adults prioritise brand names

Question 5

When will a business use location in segmentation?

Answer 5

It is common for bookshops to be located at airports and railway stations as many people read while travelling.

Other businesses adjust their products to meet consumers’ needs in different locations. The coffee shop chain Starbucks offers different menus in different countries.

Question 6

When will a business use income in segmentation?

Answer 6

Supermarkets offer basic product ranges for lower-income customers and luxury product ranges for high-income earners

Question 7

Why do businesses use different methods of segmentation?

Answer 7

As businesses can gain a number of benefits from segmenting the markets in which they sell their goods and services