1.2.3 Market segmentation Flashcards

1
Q

What is segmentation?

A

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

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2
Q

Market segment - Location

A

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

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3
Q

Market segment - lifestyle

A

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

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4
Q

Market segment - Income

A

Establishing a group’s disposable income is
important so that products can be targeted to
the relevant income group

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5
Q

Market Mapping – why?

A

Can spot a gap in the market
Can focus on features to make their products different
to competitors

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6
Q

Market segment - demographics

A

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

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7
Q

Market segment
Age

A

Each age group will have different needs and
wants in terms of products and services

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8
Q

Market mapping – how?

A

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

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