market research 1.1.2

what is market segmentation?

splits up the market into different types based on similar characteristics to enable a business to better target their target market.

how could the market be segmented?

lifestyle of intrests

age

class

gender

geographic location

define and give examples of geographical location within market segmentation

define: involves segmenting the market according to where the customer lives

examples: McDonalds, cars, clothing

define and give examples of age within market segmentation

define: dividing the market based on age 

examples: 0-10: dummy   11-16 xbox    25+ iron     70+ walker

define and give examples of gender within market segmentation

define: some products are aimed at either men or women. some products are aimed at both men and women.

examples: colour (men - black)  (women - light, pink/white)

define and give examples of income within market segmentation

define: the population can be divided into low, middle and high income, finding out a groups disposable income

examples: selling a range of products, some at different prices (lidl, aldi, poundland)

define and give examples of social class within market segmentation

define: seeing who can afford their products

example: increasing the price of a bag to target upper class, not for lower classes

define and explain ethnicity within market segmentation

define: people from different countries / ethnicities all living in the same country

examples: having Christmas products next to EID products -  increasing sales.

define and explain religion within market segmentation

define: different religions have specific food requirements

examples: McDonalds in India mainly sells vegetarian or chicken products.

physcographic segmentation

group customers according to their attitudes, opinions and lifestyle.

example: market research for chocolate manufactorurs group people who are into ‘depressive’ chocolate eating, and ‘energetic’ chocolate eating. 

segmentation by lifestyle

individual pattern of behaviour and people’s lifestyle, made up of attitudes, beliefs, habits and interests.

lifestyle change = business need to adapt.