Topic 1.2.3 Market segmentation Flashcards
it is not always possible for a business to meet the needs of all customers so they focus their efforts on meeting the needs of a particular group of customers this is known as…
target market
all markets can be categorised into groups that have similar characteristics that mean their…and…are similar
mean their needs and wants are similar
these groups of a market that have similar needs and wants are known as…
market segments
market segmentation is the process of…the segment that will become a…market
the process of identifying the segment that will become a target market
5 methods of segmentation include…l…a…i…d…l
location, age, income, demographics, lifestyle
targeting customers who live…or…a certain location is appropriate when distance from a business is an…factor (eg…shop)
targeting customers who live in or near a certain location is appropriate when distance from a business is an important factor (eg chip shop)
business may…a certain age of customer by using people the same age in their…
may target a certain age of customer by using people the same age in their advertising
(age) as people get older their…and…change,
as people get older their wants and needs change
customers with higher incomes are…to spend…on certain products
are willing to spend more on certain products
customers with a high income may look for produts with strong…image and…quality
may look for products with strong brand image and high quality
