Management of Marketing

Question 1

What is market segmentation?

Answer 1

Market segmentation is the process of grouping potential customers together by common characteristics such as gender, age or lifestyle.

Question 2

What does market segmentation allow a business to do?

Answer 2

Allow a business to more effectively tailor its products to a specific group of customers.

Question 3

Examples of market segments?

Answer 3

• Age
• Gender
• Location
• Occupation
• Religion
• Lifestyle

Question 4

What is the market segment age?

Answer 4

• Different age groups will have different needs and wants.
• For example, a teenager will have a different fashion style than a pensioner. They may also have different tastes in restaurants or music.

Question 5

What is the market segment gender?

Answer 5

Males and females may have differing requirements from their products and services such as toiletries, grooming products and clothing.

Question 6

What is the market segment location?

Answer 6

Products are tailored for customers with a specific occupation such as steel toe cap boots for mechanics or builders.

Question 7

What is the market segment religion?

Answer 7

Different religious groups may have specific needs and want. An example of this could be Easter-themed products for Christians or halal food for Muslims.

Question 8

What is the market segment lifestyle?

Answer 8

A consumer’s lifestyle will have an influence on which products or services they purchase. A couple with no children will have different tastes and requirements from a couple with a young family.

Question 9

Advantages of effective market research?

Answer 9

Allows a business to find out the wants and needs of its customers. This means that products or services can be tailored to these needs, leading to greater customer satisfaction.