Segmentation (AQA GCSE Business): Flashcards

Market segmentation is when a single market is divided into groups, each of which has distinct customer preferences.

Marketing efforts are aimed at the customers who are most likely to be interested in the product, so less money is wasted.

Satisfied customers in a segment are likely to be loyal and recommend the brand to other, like-minded customers.

It can choose an appropriate targeting strategy, such as aiming at one segment, several segments or the mass market.

True.

Businesses often combine different ways of segmenting a market, for example by income, health-consciousness and family needs.

Different age groups are likely to have different interests, influences and spending power.

False.

As populations age, spending on these specialist services has increased significantly.

Customers' needs relate to their surroundings. For example, city-dwellers are more likely to buy small, electric vehicles, while people in the countryside tend to prefer larger, all-terrain vehicles.

Customers in warmer countries make different purchasing decisions from those living in cooler climates.

Customers with different incomes make different lifestyle choices, so some products are aimed at high-income customers and others at customers with limited budgets.