Market Segmentation

Question 1

What is market segmentation

Answer 1

• Markets are split into different groups of people called market segments
• Market segmentation involves dividing customers into different groups that have something in common
• This makes it easier to identify groups of people with same customers need and wants
• Marketers therefore look for categories they can use to divide up the population

Question 2

What are the the sections of market segmentation

Answer 2

GENDER
CULTURE
AGE
RELIGION
FAMILY LIFESTYLE
INCOME AND SOCIOECONOMIC GROUP

Question 3

Gender- MARKET SEGMENTATION

Answer 3

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

Question 4

Culture- MARKET SEGMENTATION

Answer 4

Businesses provide for a wide range of cultures for example there are many different magazines and newspaper in different language and Halal butchers in area with large Muslim populations.

Question 5

Age- MARKET SEGMENTATION

Answer 5

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

Question 6

Religion- MARKET SEGMENTATION

Answer 6

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

Question 7

Lifestyle- MARKET SEGMENTATION

Answer 7

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 8

Income- MARKET SEGMENTATION

Answer 8

The population can be segments into annual salary for example someone with a high salary will be looking for a an expensive car while while someone on the low side might looks for cheap and ergonomic prices.

Question 9

Advantages of Market Segmentation

Answer 9

• Products can be varied to suit different segments
• Promotions can be targeted more easily at customers with the sdam characteristics, this prevents wasteful promotions targeted at the wrong people
• A wider range of differentiated product may be offered
• Allows appropriate prices to be set
• Ensures product are sold in the right place for the target market
• Helps the firm increase profits of the business(more sales/less wastage)
• Help the firm build up a strong market position