Business Comp 1 - Market Segmentation

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1. What does Psychographic segmentation mean?

  • The study of population. Splits people up into different groups with similar characteristics, e.g. age, gender, social class, income.
  • Based on a persons lifestyle and personality
  • Splitting people up depending on where they live.
  • How a consumer acts, e.g. whether they repetitive purchase, impulsive buy or want high quality products.
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2. What is Marketing Segmentation?

  • Continuous improvement
  • Breaking down a maket into sub groups which share similar characteristics. A business can then target these groups and develop products and services suitable to them.
  • The percentage of an industry or market's total sales that is earned by a particular company over a specified time period.

3. What does behavioural segmentation mean?

  • How a consumer acts, e.g. whether they repetitive purchase, impulsive buy or want high quality products.
  • The study of population. Splits people up into different groups with similar characteristics, e.g. age, gender, social class, income.
  • Splitting people up depending on where they live.
  • Based on a persons lifestyle and personality

4. What is the drawback of psychographic segmentation?

  • Difficult to collect data and if they do it is very expensive.
  • Consumer tastes are becoming more uniform accross geographic boundaries.
  • People/consumers can try to defy consumption patterns, e.g. a low income teenager buying a Burberry bag.

5. What is the drawback of demographical segmentation?

  • People/consumers can try to defy consumption patterns, e.g. a low income teenager buying a Burberry bag.
  • Hard to gain data
  • Consumer tastes are becoming more uniform accross geographic boundaries.

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