5.2 Segmentation

Question 1

Segmentation

Answer 1

Dividing a market into smaller groups with specific customer preferences.

Question 2

Types of segmentation.

Answer 2

• Location
• Income
• Demographic (aka age and gender)

Question 3

Reasons different businesses segment the market.

Answer 3

• Decreased costs: allows businesses waste less money by being market-driven not product-driven.
• Increased sales: higher likelihood that businesses make products that will sell.
• Customer wants: allows businesses to target marketing efforts at customers most likely to be interested in product.