Business Comp 1 - Market Segmentation

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What is Marketing Segmentation?
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.
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What are the 4 different types of sub groups which consumers are segmented?
Geographically, Demographically, Psychographic and Behavioural
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What does Demographically mean?
The study of population. Splits people up into different groups with similar characteristics, e.g. age, gender, social class, income.
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What does Psychographic segmentation mean?
Based on a persons lifestyle and personality
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What does behavioural segmentation mean?
How a consumer acts, e.g. whether they repetitive purchase, impulsive buy or want high quality products.
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What does geographical segmentation mean?
Splitting people up depending on where they live.
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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.
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What is the drawback of psychographic segmentation?
Difficult to collect data and if they do it is very expensive.
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What is the drawback for behavioural segmentation?
On its own it may fail to caputure a target market for the business.
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Other cards in this set

Card 2

Front

What are the 4 different types of sub groups which consumers are segmented?

Back

Geographically, Demographically, Psychographic and Behavioural

Card 3

Front

What does Demographically mean?

Back

Preview of the front of card 3

Card 4

Front

What does Psychographic segmentation mean?

Back

Preview of the front of card 4

Card 5

Front

What does behavioural segmentation mean?

Back

Preview of the front of card 5
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