Market segmentation

Question 1

What is market segmentation?

Answer 1

Markets can be divided into different sections, each section is made up of people with similar needs. Businesses target particular market segments with their products.

Question 2

What is the geographic market segment?

Answer 2

People are likely to have different needs depending on where they live.

Question 3

What is the demographic market segment?

Answer 3

Businesses may divide markets into age, gender, income, social class, ethnicity or religion.

Question 4

What is the psychographic market segment?

Answer 4

People grouped according to their lifestyle, attitudes and opinions

Question 5

What is the behavioural market segment?

Answer 5

Sorting people based on shopping habits, interactions with the business and their interests.

Question 6

What are the benefits of market segmentation?

Answer 6

• The business can focus their marketing more effectively
• The business can tailor products to customer needs and this will increase customer satisfaction.

Question 7

What are the disadvantages of market segmentation?

Answer 7

-There may be limited research on consumer needs and wants in a market
- Consumer attitudes and tastes change often.