Market Segmentation

Which one of the following statements correctly defines 'market segment'?

• Advertising a product on television, the radio and in newspapers

• Using both advertising and sales promotion to sell a product

• Dividing the market for jeans into male, female and different age groups

• Pricing the same product at different price levels in different areas

One possible disadvantage of market segmentation is that:

• profits will always be lower than when not using segmentation

• sales will be lower than selling the same product to all consumers in all markets

• the product will always have a very short life cycle

• advertising costs may be high as different campaigns may be needed for different groups of consumers

Which of the following ways would not be used to segment the market for cosmetics?

• The ages of consumers

• Consumers and non-consumers

• The lifestyle of consumers, e.g. celebrities

• Income groups of consumers

Which of the following is a likely advantage of segmenting the market for magazines?

• All consumers will buy more magazines

• Fewer magazine titles will be published

• Advertising of the magazines will be targeted towards the right consumers

• The prices will be lower than if there was no segmentation of this market

All these factors influence the choice of segmentation except:

• size of the potential segment

• number of employees

• company image

• cost of entering each segment

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