1.2.3 Market segmentation Flashcards
What is segmentation?
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
Market segment - Location
A business may decide to
sell its product in just one
country, one region (like
Scotland), or in an even
smaller area
Market segment - lifestyle
Customers can be grouped
according to the way they
lead their lives and the
attitudes they share
Market segment - Income
Establishing a group’s disposable income is
important so that products can be targeted to
the relevant income group
Market Mapping – why?
Can spot a gap in the market
Can focus on features to make their products different
to competitors
Market segment - demographics
Demographics mean statistical data relating to the population
and particular groups within it
Market segment
Age
Each age group will have different needs and
wants in terms of products and services
Market mapping – how?
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