1.2.2 market research

Question 1

What is segmentation?

Answer 1

Market research will show that a particular
product appeals to a specific group of people

Businesses need this information to identify
groups with similar wants and needs

Question 2

Market segment - Location

Answer 2

A business may decide to
sell its product in just one
country, one region (like
Scotland), or in an even
smaller area

Question 3

Market segment - demographics

Answer 3

Demographics mean statistical data relating to the population
and particular groups within it

Question 4

Market segment - lifestyle

Answer 4

Customers can be grouped
according to the way they
lead their lives and the
attitudes they share

Question 5

Market segment - Holidays

Answer 5

A business may decide to segment
the market according to lifestyle

This may be a combination of; values
attitudes, perceptions, beliefs

Question 6

Market segment - lifestyle

Answer 6

Look at these holidays – can you describe the type of person
who’s lifestyle means that would take these holidays:

Question 7

Market segment - Income

Answer 7

The population can be segmented according
to annual salary (e.g. £15,000, £30,000 etc.) or
type of job and social class

Question 8

Market mapping –

Answer 8

In order to identify a gap in the market, it may
be useful for a business to construct a diagram
of where competitors are on two axes (for
example price and quality):