Market Segmentetion

Question 1

What is market segmentation

Answer 1

The classification of customers or potential customers into groups with similar characteristics, each segment will respond differently to different products or marketing approaches

Question 2

Methods of segmentation the market

Answer 2

Demographic- age gender , income- occupation social class geographic- region/country urban/rural , behavioural - lifestyle, interests

Question 3

Benefits of market segmentation

Answer 3

• match products to needs, increasing sales
• increase market share
• assist new product development
• extend products into new markets
• identify ways of promoting a product

Question 4

Limitations of market segmentation

Answer 4

• diffuckt to identify the most important
• may be difficult to promote a chosen segment
• diffuckt to recognise changes in segments, constant research
• may ignore potential customers if only focus on on certain segments