Customers - Marketing

Question 1

What does the market segmentation involve?

Answer 1

Market segmentation involves putting potential customers into groups based on specific criteria or
characteristics.

Question 2

A business can use many different criteria to segment the market:

Answer 2

• age - consumers are divided into groups based on age brackets, e.g. 13-18 or over 55;
• gender - consumers are grouped together based on the gender that they identify with as
commonly used in the cosmetic and clothing markets;
• income level - consumers are grouped together based on how much disposable income they
have;
• lifestyle/hobby - consumers who have a particular lifestyle or hobby are grouped together, e.g.
vegetarians or gamers;
• religion - consumers are grouped together based on their religious or cultural beliefs.

Question 3

What are the benefits of target marketing?

Answer 3

• products or services will be better suited to the target market’s needs or wants, leading to
improved customer satisfaction;
• businesses will choose appropriate pricing that appeals to their target markets, leading to an
increase in sales;
• businesses will sell their products in appropriate places where the target market shops, leading
to an increase in sales;
• there is a decreased chance of product failure, leading to the likelihood of a reduction in wasted
investment by businesses.