markets, market segmentation

Question 1

how can a business segment a market?

Answer 1

geographic-differnt countries
psychographic-based on personalities eg) needing a fmaily car
demographic-gender, age, social class
lifestlye- differnt food options based on health

Question 2

evaluate the improtance of segmentation

Answer 2

advanatges
- charge higher prices as the products are more tailored towards specific customer needs
- increased customer loyalty as their needs are being met
-prevent promtoion to wrong people and can be advertised more specifcically
disadvantages
- increased cost and time of production as more specialised
-business may not focus on most profitable ways of production

Question 3

what is the impact on customers of market segmentation?

Answer 3

advantages
- more likely to be aware of the products as the advertising will be specfically targterd towards them
- directly fits with their needs and wants
disadvantages
- higher prices may be charged
- some segments may not be tailored for