Market Segmentation

___________ is a method used to identify customers with similar wants and needs.

• Selling
• Planning
• Market Segmentation
• Sales pitch

Segmentation of a market is done to help with?

• Targeting advertising more accurately
• Increase the amount of products being made
• Improving the quality of goods being sold
• Making sure that workers are happy at work

How is a market segmented by 'location'?

• Products can be aimed specifically at males or females or both
• People have different hobbies and interests, which can be connected to income and location.
• Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
• Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old

How is a market segmented by 'gender'?

• Products can be aimed specifically at males or females or both
• People have different hobbies and interests, which can be connected to income and location.
• Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
• Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old

How is a market segmented by 'age'?

• Products can be aimed specifically at males or females or both
• People have different hobbies and interests, which can be connected to income and location.
• Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
• Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old

The change in climate of the city, where a product is being sold will affect the __________region of the marketing plan.

• Geographic
• Demographic
• Psychographic
• Telepathic

Define what is meant by 'target market'

• Group of customers at which a product or service is aimed, or targeted.
• Splitting the market for a product into different parts, or segments.

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach. 

• Gender
• Income
• Geographic
• Benefit

What is an advantage of market segmentation

• You will sell your goods to anyone

• Ensuring customer needs are matched and met

• Allows for targeted advertising

• You have a wide target audience

What is a disadvantage of Market Segmentation?

• Potential for an increase in market share

• Limited who you are selling your product to

• Increased customer retention

• Costs money to find out the target market