Topic 1.2.3 Market segmentation

Question 1

How do business use market segmentation to target customers?

Answer 1

Location-Dividing market into geographical units e.g countries,regions
Demographic-Based on or the variables such as age or gender or behaviour of people
Lifestyle-The way in which customers live their life e.g hobbies
Income-Based on the amount of money someone earns-widely used by luxury brands
Age-Different products or different age groups

Question 2

What is market mapping?

Answer 2

A market map illustrate the range of positions that a product can take in a market based on two features that are important to customers.
-Allows a business to see all the products and services in a market
-identify its competitors
-Spot any gaps in the market