Market segmentation Flashcards
1
Q
What is a market segment?
A
A group of buyers with similar characteristics and buying habits
2
Q
What does segmenting a market do?
A
Targets the customer
3
Q
What are some ways to segment a market?
A
Age
Gender
lOCATION
income
lifestyle
4
Q
What are some benefits of segmentation?
A
Meet customer needs
DIFFERENTIATE the products
Focus on specific groups
Unique brand image
Build customer relationship
5
Q
What are some limitations of segmentation?
A
Direct target at customers can be costly.
Missed business opportunities
Changing customer characteristics
(Businesses have to continuously update their customer understanding)
