market segmentation Flashcards
what’s market segmentation?
process of dividing potential customers into different groups based on characteristics like age, gender, income ect
what variety of reasons do businesses use market segmentation for?
choosing market mix , promotion and market mapping
When choosing the product, price (geographic), promotional and price what can segmentation help a business to understand?
its customers’ needs and wants. E.g Next provides clothing aimed at infants and toddlers using its Next Kids range.
what can segmenting a market give businesses ideas about how best to promote?
their products.
whats market mapping?
a process to identify a gap in the market by looking at what competitors offer
what different variables can customers be segmented into in a business?
location, age, gender and income
true or false. customers needs can often changed based on where someone lives or where they were born
TRUE
Certain products (luxury products) need to be aimed at people who..?
earn a certain amount of money.
Once businesses have segmented the market what can they use to identify a gap in the market?
market mapping, by looking at what competitors offer.
what are competitors products mapped against
different variables based on the features that they offer. For example, products could be mapped based on their price and quality.
what factors are often used for market mapping?
price and quality
