Market segmentation (Edexcel GCSE Business): Flashcards
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Market segmentation definition
Market segmentation definition
Dividing customers into distinct groups by shared characteristics & buying behaviours
Market segment definition
Market segment definition
Specific group of buyers with similar traits & shopping patterns
Demographic segmentation factors
Demographic segmentation factors
Age groups and gender
Economic segmentation factors
Economic segmentation factors
Income levels and socio-economic groups
Geographic segmentation meaning
Geographic segmentation meaning
Location-based customer differences
Lifestyle segmentation meaning
Lifestyle segmentation meaning
Customers' interests, values and activities
Benefit: meeting customer needs
Benefit: meeting customer needs
Better understanding of what different customer groups want
Benefit: product differentiation
Benefit: product differentiation
Create unique products for specific customer segments
Benefit: focused customer targeting
Benefit: focused customer targeting
Concentrate efforts on most profitable customer groups
Benefit: effective marketing
Benefit: effective marketing
More relevant advertising & promotional campaigns
Benefit: unique brand image
Benefit: unique brand image
Position clearly in minds of target customers
Limitation: increased costs
Limitation: increased costs
Targeting multiple groups requires more resources
Limitation: missed opportunities
Limitation: missed opportunities
Focusing too narrowly overlooks other profitable groups
Limitation: changing characteristics
Limitation: changing characteristics
Customer lifestyles & preferences evolve over time
Role of market research in segmentation
Role of market research in segmentation
Provides accurate, up-to-date customer information