Market Segmentation

Which two of the following are examples of market segmentation based on income? Select two answers:

• A designer/luxury suit aimed at consumers with high salaries

• A fragrance aimed at male consumers

• A package holiday aimed at consumers under 30 years of age

• A car aimed at high earning consumers

• A cake aimed at consumers with specific dietary requirements

Which two of the following statements are true in relation to market segmentation? Select two answers:

• Some businesses attempt to reach all market segments

• Market segmentation will guarantee a business is always successful

• Once market segments have been identified, they are easy to reach

• It is easy to predict, measure and segment the market

• It allows businesses to more easily target consumers with similar characteristics

CBeebies, a BBC television network aimed at children under 6 years old, is aimed at a segment based upon:

• Gender

• Location

• Age

• Income

Which of the following could be seen as the opposite criterion to 'traditional' on a market map?

• Everyday

• Modern

• Luxury

• High quality

M&S sells clothes aimed at males, females, adults and children. This is an example of segmentation according to:

• Income and lifestyle

• Age and income

• Location and income

• Age and gender

Which of the following is a type of segmentation based on how much a customer earns?

• Lifestyle

• Age

• Location

• Income

Which of the following is a benefit to a business of segmenting a market?

• Increased risk of making inaccurate business decisions

• Market segments are always very easy to reach

• High sales levels are guaranteed

• The business is more likely to generate sales from its products

The method used to identify where a product is positioned in the market in terms of certain criteria, such as high priced/low priced, is best known as:

• Market segmentation

• Market share

• Market mapping

• Marketing mix

Discount supermarkets, such as Aldi and Lidl, are most likely to segment the market according to:

• Gender

• Age

• Income

• Lifestyle

A business manufactures and sells vegetarian ready meals. Which type of market segmentation would the business most likely use?

• Location

• Lifestyle

• Gender

• Age