Market segmentation

Question 1

What is market segmentation?

Answer 1

The process of dividing the larger market into smaller groups that have common features/characteristics

Question 2

What are the 3 types of segmentation

Answer 2

Demographic segmentation
Psychographic segmentation
Geographic segmentation

Question 3

Describe Demographic segmentation

Answer 3

Grouping people based on lifestyle characteristics:
- Age
- Gender
- Family size
- Income
- Occupation
- Religion

Question 4

Describe Psychographic segmentation

Answer 4

Grouping people based on opinions and mental traits:
- Interests
- Opinions
- Attitudes
- Values

Question 5

Describe Geographic segmentation

Answer 5

Pretty much just their area:
- Continent, city, neighbourhood
- Population size of area
- Population density of area
- Climate of area

Question 6

What is positioning of a product

Answer 6

Refers to the place a product occupies in a consumer’s mind based on its quality and price

Question 7

How would Rolex use segmentation to find its target audience

Answer 7

They could find those with:
- High income
- Any gender
- Showboaters
- Different languages (dials)
- People who care about money/showing it off