3.5.2 - Segmentation

• Examples of segmentation:

  • lifestyle
  • age
  • location
  • income
  • ethnicity
• what is segmentation?

  dividing a market (customers) into parts that reflect different customer needs and wants
• advantages of effective segmentation:

  • helps with new product development
  • allows a business to grow its shares in a market
• disadvantages of effective segmentation:

  data is not always available - up to date or reliable

  markets are fast moving and so are segments found within a market
• what is target segment?

  dividing your target market into approachable groups
• what is demographic?

  dividing a market based on a segment e.g age, gender