Unit 2 - 2.3 - Market Segmentation

Question 1

What is market segmentation?

Answer 1

Splitting the market for a product or service into different parts or segments.

Market segmentation helps in targeting specific customer groups more effectively.

Question 2

What factors should a business consider when deciding whether to produce different products for different markets?

Answer 2

The business may consider offering male/female versions or basic and more sophisticated models.

This involves market segmentation and tailored product offerings.

Question 3

What pricing strategies might a business evaluate?

Answer 3

High or low pricing strategies.

Pricing strategies can impact market positioning and consumer perception.

Question 4

What aspects should a business evaluate regarding product promotion?

Answer 4

The type of media to use and what message this method may give.

This includes assessing target audience and communication effectiveness.

Question 5

Where should a business consider locating its shops?

Answer 5

Town centre, shopping mall, holiday resort, and whether to sell online or not.

Location affects foot traffic, accessibility, and sales potential.

Question 6

What demographic segments would be in the spec of market segmentation?

Answer 6

Age,gender,income,lifestyle,location