IB DT: Topic 9.2: Market Sectors and Segments (copy)

for practice questions/ppt go to: https://docs.google.com/presentation/d/1ipGV9ebaQHKu0pioRTHSK1Ts39Jcq_iegy9srxoQA50/present?slide=id.gfc18fce4cc_0_183

What is a market sector?

A broad way of categorising the kinds of market the company is aiming for

What is a market segment?

Markets divide into smaller segments where the purchasers have similar characteristics and tastes. A group of people in a homogeneous market who share common marketable characteristics.

What is a product family?

A group of products having common classification criteria. Common parts and assemblies.

What characteristics can be used to create consumer market segments?

Product family example

What are the advantages of using common parts across different models?

• Higher efficiency and reduced costs when manufacturing parts

• Reduced costs (less staff training and R&D)

• More parts on hand for replacements

• Saves on waste when using high end parts on mid range products for the following year