Understanding Market Segmentation

What is market segmentation?

• The process of creating new markets for products

• The process of dividing a market so that customers are grouped based on common characteristics

• The process of increasing product prices to maximise profit

• The process of merging different markets into one

Which of the following is an example of gender-based market segmentation?

• Toys for children

• Makeup for women

• Mercedes for high income

• Warm coats for colder climates

How is age used in market segmentation?

• By targeting products at specific job types

• By targeting products at particular age groups

• By targeting products at people living in specific areas

• By targeting products at people with certain incomes

Which of the following is an example of income-based market segmentation?

• DeWalt™ targeting trades people

• Warm coats for colder climates

• Mercedes for high income

• Makeup for women

What does lifestyle segmentation focus on?

• The age of the customer

• The gender of the customer

• The habits, hobbies, and interests of people

• The geographic location of the customer

Which of the following is an example of geographic location-based market segmentation?

• Toys for children

• Warm coats for colder climates

• Makeup for women

• Mercedes for high income

How is occupation used in market segmentation?

• By targeting products at people with certain incomes

• By targeting products at people living in specific areas

• By targeting products at customers with a specific job type

• By targeting products at particular age groups

What is one benefit of market segmentation?

• Decreased customer satisfaction

• Increased market share

• Higher production costs

• Less targeted marketing

How does market segmentation help in retaining customers?

• By increasing product prices

• By meeting customer needs more effectively

• By reducing the quality of products

• By expanding into unrelated markets

What is targeted marketing?

• Creating random adverts for all customers

• Creating suitable adverts to attract the attention of a specific customer group

• Reducing marketing efforts to save costs

• Marketing products to everyone equally