2.6 Benefits of market segmentation

Front

What is the benefit of better matching customer needs?

Back

Businesses can target their products at the right customers, creating separate products for each segment, like car manufacturers producing different cars to meet different customers’ needs.

Front

How does meeting customer needs affect profits?

Back

The more products meet the needs of customers, the more likely increased sales will occur. Businesses can target product promotions at their target market and charge a higher price to loyal market segments.

Front

Why is customer retention important?

Back

Customers are likely to remain loyal if the business continues to meet their needs and are likely to return if satisfied with past purchases.

Front

How does meeting customer needs impact market share?

Back

Meeting customer needs leads to more sales, which can increase market share by generating more sales at the expense of competitors.

Front

What is targeted marketing?

Back

Targeted marketing involves aiming products and promotions, such as advertising, at the people who are most likely to be the business's target customers.