Session 8 - market mapping and segmentation

Question 1

Define market segmentation

Answer 1

An identifiable group of individuals where consumers share one (or more) characteristic of need

Question 2

4 ways to segment are

Answer 2

Demographic, psychographic, geographic, behavioural

Question 3

Examples of demographic segmentation are

Answer 3

Age, gender

Question 4

Examples of psychographic segmentation are

Answer 4

Hobbies and interests

Question 5

Examples of geographic segmentation are

Answer 5

Where they live

Question 6

Examples of behavioural segmentation are

Answer 6

Behaviour in store or online

Question 7

Benefits of market segmentation

Answer 7

Easier to research needs of the segment, design a product to meet their needs, focus advertising to that segment, identify a profitable segment

Question 8

Problems of market segmentation

Answer 8

Difficulty in identifying the most important segment for the business.
Failure to meet the needs of customers not included in your segment.
Recognising and adapting to changes within that segment.
Are you limiting the amount of money you could make?

Question 9

Define market mapping

Answer 9

The process of using a graph to plot competitors and their products to understand competitor behaviour and spot a gap in the market

Question 10

Benefits of market mapping

Answer 10

Can help businesses make decisions about new or existing brands
Businesses can identify who their main competitors are and how similar / different their brands are from their rivals
It can help reposition the brand
Can help to identify gaps or niches in the market which could be filled by new products