Market Segmentation Flashcards
(4 cards)
What is Market Segmentation?
an identifiable group of individuals (or part of a market) where consumers share one (or more) characteristic or need
What are the 4 main categories of market segment?
Demographic segments e.g. gender
Geographic segments e.g. Wales
Income segments e.g. lower class
Behavioural segments
What are the four benefits of market segmentation?
Easier to research the needs of the segment
Design a product to meet their needs
Focus advertising to that segment
Identify a profitable segment
What are the four problems with market segmentation?
Difficulty in identifying the most important segment for the business.
Failure to meet the needs of customers not included in your segment.
Recognising and adapting to changes within that segment.
Are you limiting the amount of revenue you could make?
