Market Segmentation

Question 1

What is market segmentation?

Answer 1

Market segmentation is the process of dividing consumers into groups or segments based on similar characteristics or needs

Question 2

What is the purpose of market segmentation?

Answer 2

The nature and purpose of market segmentation aim to identify and target specific customer groups to better understand their preferences, behaviours, and purchase motivations. This allows businesses to tailor their marketing strategies, products, and services to meet the unique needs of each segment.

Question 3

What demographic factors could market segmentation include?

Answer 3

-Age and gender
-Income and occupation
-Location
-Religion/belief, attitudes and lifestyles
-Purchasing patterns or brand loyalty

Question 4

What are the benefits of market segmentation?

Answer 4

-Provides deeper insights into customers’ diverse needs, preferences, and behaviours
-Allows businesses to understand their target audience more effectively
-By segmenting the market, businesses can tailor their marketing efforts to specific segments, positioning their products or services more effectively to appeal to the needs and wants of each segment.
-Helps businesses direct its marketing efforts and resources towards the most promising segments, resulting in a higher return on investment.
-Businesses can differentiate themselves from competitors and gain a competitive edge in the market

Question 5

What is a target audience?

Answer 5

A target audience is a specific group of people or customers that a business aims to reach and engage with through its marketing efforts

Question 6

How do target audiences affect a business?

Answer 6

By knowing the preferences and characteristics of their target audience, businesses can develop and offer products or services that align with their specific needs and desires