Marketing - Customers - Target Marketing

Question 1

Name 4 purposes of target marketing

Answer 1

• To raise awarness of products and services
• To raise the organisations profile
• To encourage customers to purchase products
• Retain existing customers

Question 2

What is market segmentation?

Answer 2

It is the process of dividing a broad consumer or business markets into sub-groups of consumers based on shared characteristics

Question 3

Name 5 ways a business can segment their market

Answer 3

• Age
• Gender
• Religion
• Lifestyle
• Socio-economic grouping

Question 4

Describe 4 benefits of target marketing

Answer 4

1. Products can be tailored to meet the needs of particular groups of consumers.
2. The products can be sold in places that reach the chosen target (maximises sales)
3. Pricing will be set to reflect what a target market will be willing to pay (maximises profits)
4. Promotion techniques can be tailored to entice a company’s target market. Prevents money being wasted.

Question 5

What is a market?

Answer 5

A place where buyers and sellers come together

Question 6

What is marketing?

Answer 6

The act of satisfying and retaining customers.