Market Segmentation

Question 1

What is market segmentation?

Answer 1

identifying different segments
within a market and targeting different products or services
to them

Question 2

What is a market segment?

Answer 2

a sub-group of a whole market in which

consumers have similar characteristics.

Question 3

What is a consumer profile

Answer 3

a quantified picture of consumers of a firm’s products, showing proportions of age groups,
income levels, location, gender and social class

Question 4

How can a market be segmented?

Answer 4

Geography, demographic (age, gender race), physiological

Question 5

Pros of market segmentation?

Answer 5

Can create specific products to their target segment increasing sales
Can target group not being targeted
Saves money
Lets small firms survive in the whole market
Price discrimination can be used to increase revenue and profits

Question 6

Cons of market segmentation

Answer 6

RnD and product costs might be high
Inflexible to consumer trend changes
Extensive market research required