Customers and Market Segments

Question 1

What does Market Segment mean?

Answer 1

Many organisations will aim to sell their products/services to particular groups of customers whose share similar characteristics,

Question 2

What does Target Marketing mean?

Answer 2

Once an organisation has identified a suitable market segment, they will devise ways to promote and sell products/services to customers within that segment.

Question 3

What are 6 examples of Market Segments?

Answer 3

Age
Gender
Geographic Location
Income
Religion
Occupation

Question 4

What is an example of Age?

Answer 4

A clothing brand aimed at teenagers.

Question 5

What is an example of Gender?

Answer 5

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

Question 6

What is an example of Geographic Location?

Answer 6

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

Question 7

What is an example of Income?

Answer 7

A travel agent targeting high income customers with luxury cruises.

Question 8

What is an example of Religion?

Answer 8

A meat producer creating Halal producing for Muslim customers.

Question 9

What is an example of Occupation?

Answer 9

A stethoscope designed for doctors and nurses.

Question 10

Why do organisations target specific customers?

Answer 10

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.