- where the market is broken down into smaller sub-sections. People within each sub-section have similar characteristics.
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what are the rules for segmentation?
-segments must be recognizable
-segments must have critical mass
-segments have to be targetable
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what are the advantages of market segmentation?
-the business gets a better insight into the wants and needs of the customers
-more specific targeting of promotions to specific customers
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what are the disadvantages of market segmentation?
-requires market research which can be costly and time consuming
-may not be suitable for a new business as they are limiting their target audience
-not all customers within the same segment want the same product
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what is demographic segmentation?
– segmentation based on information referring to key characteristics of the population
includes:
Age ,Gender, Income, Social class, Ethnicity , Religion
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what is geographical segmentation?
-segmentation based on where customers live
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what is psychographic segmentation?
-segmentation based on customers’ attitude, social class, lifestyle and personality.
-based on: Activities, Interests, Opinions, Attitudes ,Values
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what is market size?
-is the measurement of the size of total sales expressed in either sales (£) or volume (units)
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what is market share?
-the proportion of a total market accounted for by one product or company
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what is the market share formula?
value of product sales
-------------------- x100
value of market sales
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what is market growth?
-the percentage change in sales (volume or value) over a period of time.
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Other cards in this set
Card 2
Front
what are the rules for segmentation?
Back
-segments must be recognizable
-segments must have critical mass
-segments have to be targetable
Card 3
Front
what are the advantages of market segmentation?
Back
Card 4
Front
what are the disadvantages of market segmentation?
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