segmentation Flashcards
1
Q
defenition
A
potential customers divided into groups
2
Q
5 different examples of segmentation
A
age, gender, income, lifestyle, location
3
Q
pros (2)
A
meet customer needs more effectively, leading to an increase in customer loyalty. reduce price sensitivity so business can increase the prices
4
Q
cons (2)
A
higher costs, for example business may need to market to target new segment. wider product range leads to a decrease in economies of scale, making products more expensive to produce.
