Market Segmentation

• Market segmentation


  is the process of splitting a business’ target market into different groups
• Market segmentation methods:

  Demographics e.g. age, gender, ethnicity, religion 

  Location

  Income

  Lifestyle
• Benefits of market segmentation:

  Better match customer needs

  Better opportunities for growth

  More effective promotion

  Gain a higher share of the market
• Market mapping


  is the process of using a graph to plot competitors and their products.
• Purpose of market mapping

  To understand competitor behaviour

  To spot a gap in the market