Business Segmentation Flashcards
What does market segmentation involve
a single market being put into groups which target customer preferences
How does market segmentation affect customer satisfaction?
Customer needs are better met, leading to satisfaction, loyalty, and positive word-of-mouth.
Why is market segmentation useful for businesses?
It allows targeted marketing, making the marketing budget more efficient and increasing customer satisfaction.
What is a targeting strategy?
A plan businesses use to direct their marketing and products at specific market segments.
Give an example of a business targeting a specific market segment
Ecover targets environmentally-conscious consumers with chemical-free cleaning products.
How does Tesco use market segmentation?
Tesco targets different income groups with its own-brand ranges like Stockwell (budget) and Finest (premium).
What is the mass market approach?
Offering products that appeal to a wide range of consumers, like Coca-Cola’s broad product range.
Can businesses use more than one method of market segmentation?
Yes, businesses often segment markets in multiple ways to reach various customer types.
How is the UK crisp market segmented?
By consumer type: premium dinner snacks (e.g. Pringles), health-conscious (e.g. Walkers Baked), and lunchbox snacks (e.g. Quavers).
