3.1 Marketing, Competition and the Customer

Define what is meant by the term 'market segmentation'

• The action or activity of gathering information about consumers' needs and preferences.
• The splitting of the market for product or service into different parts, or segments.

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.

Which of the following are methods used to segment a market?

• Age, religion, school you go to, eating habits and views on education.

• Age, gender, income, location and lifestyle.

• Age, socio-economic group, location, gender, income, family characteristics, education, occupation

• Age, socio-economic group, school you go to, location, gender, income, family characteristics, education, occupation, views on education

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.

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 '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 'income'?

• 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.

• The population can also be divided into; low income, middle income and high income.

• Age groups can be split into categories e.g. 0-10, 11-16 or 18+. Or even by young and old.

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.

Which market segments would this product appeal to?

• Young, females, any income, any location
• Any age group, females, high income, living in Scotland, sporty

How would you change this product so that it appealed to young males?

• Leave the colour as boys like this colour anyway
• Change the colour to blue and use different pictures to fairies, by using superheroes.