Customer needs and Market Segmentation

Question 1

What is customer needs?

Answer 1

What people want and need.

Question 2

3 ways to start up a sucessful business

Answer 2

1. Do something really new and that people want
2. Do something that already exists, but do it better.
3. Do something that already exists, but at a lower cost.

Question 3

What is Market Segment?

Answer 3

Group of customers with similar characterisitcs and buying habits.

Question 4

List 7 ways of how business could segment market on.

Answer 4

1. Age: Children, teenagers, elderly etc,
2. Gender: Male/Female
3. Income: Low income, middle income or high income
4. Geographical area: different people in different countries have different tastes.
5. Ethnicity and religous groups
6. Social-economic groups - population is grouped according to income and job description
7. Lifestyle and hobbies.

Question 5

What is Market Mapping?

Answer 5

setting out the key features of the market in a diagram, then plotting where each brand fits in.

Question 6

What can market mapping do?

Answer 6

Market mapping can identify gaps and show where a sector is overcrowded.

Question 7

Purpose of market mapping?

Answer 7

Market mapping is a useful form of market research. Allows a business to research its competitors.