Market Segmentation

Question 1

What is the definition of market segmentation?

Answer 1

The practice of dividing your target market into approachable groups. Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioral criteria.

Question 2

What is the definition of psychographics?

Answer 2

The classification of people according to their attitudes, aspirations, and behavior.

Question 3

What is the definition of demographics?

Answer 3

The classification of people according to race, age, gender, and location.

Question 4

Why is market segmentation important for a business?

Answer 4

Market segmentation enables a business to target different groups of customers by adapting their services and marketing to suit each targeted segment best to further business endeavors.

Question 5

How to Determine Market Segment

Answer 5

1. Set Expectations and Objectives 2. Identify Customer Segments 3. Evaluate Potential Segments 4. Develop Segment Strategy 5. Launch and Moniter