Customers and Market Segmentation

Question 1

What is market segmentation?

Answer 1

Market segmentation is when a market is divided into particular groups of customers who share similar characteristics, known as a market segment.

Question 2

What are the 6 different market segments?

Answer 2

Age
Gender
Geographic location
Income
Religious or Cultural Beliefs
Occupation

Question 3

Example for age…

Answer 3

A clothing brand aimed at teenagers.

Question 4

Example for gender…

Answer 4

Designing two versions of shower gel; one for men and one for women.

Question 5

Example for geographic location…

Answer 5

Promoting Irn-Bru to Scottish people by advertising on billboards in Scottish towns and cities.

Question 6

Example for income…

Answer 6

A travel agent targeting high income customers with luxury cruises.

Question 7

Example for religious or cultural beliefs…

Answer 7

A meat producer creating Halal products for Muslim customers.

Question 8

Example for occupation…

Answer 8

A stethoscope designed for doctors and nurses.

Question 9

Why do organisations target specific customers?

Answer 9

Less time consuming to carry out market research.
Product can be designed to meet specific needs of target market.
Advertising and promotions can be designed for target market.
Prices can be more accurately set to reflect the particular target market.
Ensures a suitable place is chosen where target market will buy the product.