How And Why Market Segmentation Is Undertaken:
Overview
Not all customers are the same. The chocolate a small child loves is not the luxury box an adult buys as a gift; the car a high earner desires is not the one a budget-conscious family chooses. Smart businesses stop treating 'the market' as one big blur and instead split it into groups of similar customers. That splitting is called market segmentation.
In this lesson you will learn how markets can be segmented, by age, income, location, gender and more, why segmentation benefits a business, and how to recommend and justify the right method of segmentation for a given situation. By the end you will be able to target a product at the customers most likely to buy it.
Objectives
- How markets can be segmented, e.g. according to age, socio-economic grouping, location, gender
- Potential benefits of segmentation to business
- Recommend and justify an appropriate method of segmentation in given circumstances
Lesson Note
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Lesson Evaluation
Congratulations on completing the lesson on How And Why Market Segmentation Is Undertaken:. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- Market segmentation means dividing a market into: A. fixed and variable costs B. groups of customers with similar characteristics C. public and private sectors D. exports and imports Answer: B
- Selling a budget car to low earners and a luxury car to high earners is segmentation by: A. age B. socio-economic group (income) C. location D. gender Answer: B
- A benefit of market segmentation to a business is that it: A. removes all competition B. makes marketing spending more cost-effective C. eliminates the need for a product D. guarantees zero costs Answer: B
- Selling waterproof coats only in a rainy region is segmentation by: A. gender B. income C. location/region D. lifestyle Answer: C
- A segment whose needs are not currently being met is called a: A. gap in the market B. balance of payments C. break-even point D. trade credit Answer: A
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Recommended Books
Practice Mock Questions
Want to practice mock questions on How And Why Market Segmentation Is Undertaken:? Download the Green Bridge CBT app to access mock questions and full practice assessments for this topic.
Download The App On Google Playstore
Everything you need to excel in JAMB, WAEC & NECO
