market segmentation

• Businesses use market segmentation as a way of identifying and grouping their target customers.
• If businesses did not put their customers into groups ( segment their market) , then they would be aiming their products at everyone.
• Customers can be segmented by:

  age, gender, occupation, location, lifestyle and income
• benefits of market segmentation:

  1. meeting customers needs- better understanding of who their customer is and what this customer wants or needs
  2. targeted marketing- can use marketing methods that suit the target customer within their identified market segment
  3. increased customer retention- customer retention means repeat customers. If the business knows their customer's needs, and meet these, it's likely they will return
  4. increase market share- market share is the proportion of sales made by one business from all sales within a single market. This may increase if a business segments well