Market Segmentation And Target Market

Question 1

What is market segmentation?

Answer 1

It is the process of breaking down the market into groups of consumers with similar needs and wants.

Question 2

What is target market?

Answer 2

It means the type of people (market segments) you are selling to. Market segments can be based on combinations from the following factors:
• Age
• Gender
• Area
• Ethnicity
• Religion
• Hobbies and interests
• Income / Socio-economic groups

Question 3

What are the benefits of identifying your target market?

Answer 3

• Helps you provide the right products
• Helps you set the right prices
• Helps you choose the best advertising media and advertising content
• Helps ensure that your market research is carried out with the right type of people.