2.3 Market Segmentation Flashcards

All 10 cards in this deck

What is market segmentation?

Dividing a market into groups of customers with similar characteristics so products can be targeted at them.

Name five ways of segmenting a market.

Age, gender, income, location and lifestyle.

What is a target market?

A group of customers which a business aims its products or services at.

Give one way a small business could use market segmentation to target customers.

Any one of: segment by gender and target different products at male or female customers; segment by income and develop a higher quality product for higher-income customers.

Give one benefit to a business of segmenting its market.

Any one of: products can be designed to meet each group's needs more closely; marketing can be aimed at the right customers, so less is wasted; it builds closer relationships with customers.

What is segmentation by age?

Targeting customers of a particular age group, e.g. a toy shop organising toys for babies, children and teenagers.

What is segmentation by gender?

Targeting customers by sex, e.g. products aimed at men, women or non-binary customers.

What is segmentation by income?

Targeting customers by how much they earn, e.g. a garage selling low-priced second-hand cars to residents on low incomes.

What is segmentation by location?

Targeting customers in a particular place, e.g. locals, a specific region or a nation.

What is segmentation by lifestyle?

Targeting customers by how they live or what interests them, e.g. healthy eaters, sports fans, outdoor pursuits or hobbies.