theme 1-page 13

Question 1

what is market segmentation

Answer 1

a group of customers divided into different groups based on similar characteristics

Question 2

how can you segment a market

Answer 2

through demographics,lifestyle,income,gender,location

Question 3

list three benefits of market segmentation

Answer 3

-meet specific customer needs
-differentiate its products
-develop a unique brand image

Question 4

list a limitation of market segmentation

Answer 4

-customer characteristics change over time

Question 5

what are the benefits of market mapping

Answer 5

-helps identify gaps in the market
-helps businesses identify their competition
-helps business to make informed decisions about marketing

Question 6

what are the limitations of market mapping

Answer 6

-based opinion rather than accurate data
-compares businesses based on two variables (quality and price) which is too simplistic

Question 7

how can businesses compete

Answer 7

-lower prices
-higher quality
-wider product range

Question 8

what is product differentiation

Answer 8

making a product different.This can be making your prices lower