market segmentation

Question 1

definition of market segmentation?

Answer 1

breaking down a market into sub-groups, that share similar characteristics

Question 2

what are the three types of segmentation and what do they include?

Answer 2

-demographic- age, social class, gender, income
-psychographic- personality, emotional, (e.g., family cars would want safety)
-geographic- regions of country, rural, urban, suburban

Question 3

benefits and importance of segmentation

Answer 3

-greater knowledge about customers, product can vary to suit them better
-target customers with particular products
-targeting customer needs develops customer loyalty
-stops products being promoted to the wrong customers, so reduces waste and cost
-higher prices can be charged
-target of promotion is better

Question 4

negatives of segmentation

Answer 4

-risk can not be spread if business is focused on one segment
-some customers feel excluded
-reduction of choice for customers
-not up date
-cant reach customers in it
-market is fast changing