Identify Market Segments

• What is market segmentation?

  Splitting a target market into groups
• Why do businesses use market segmentation?

  To develop products for specific groups
• What factors do small businesses consider for segmentation?

  Location, demographics, behaviour, lifestyle, income, age
• What is geographical segmentation?

  Splitting a market based on location
• How might a business use geographical segmentation?

  Target local customers with specific products
• What does demographic segmentation consider?

  Characteristics like age, gender, and race
• How might a make-up business use demographic segmentation?

  Target females aged 19–35 in the UK
• What is behavioural segmentation?

  How people behave in relation to purchases
• When do people typically make additional purchases?

  During birthdays, holidays, and celebrations
• How might a card business benefit from behavioural segmentation?

  By targeting events like birthdays and holidays
• What does lifestyle segmentation consider?

  Hobbies and interests of the target market
• How might a camera retailer use lifestyle segmentation?

  Target customers interested in photography
• What is income segmentation?

  Considering how much people earn
• Why is income segmentation important for certain products?

  It helps target customers with disposable income
• How might a luxury car business use income segmentation?

  Target customers with high income levels
• What is disposable income?

  Money available after taxes are deducted
• How does disposable income affect product targeting?

  It determines which customers can afford products
• How do the different types of segmentation work together?

  They provide a comprehensive view of the market