GCSE Business: Market Segmentation

Vocabulary flashcards covering core definitions, methods of segmentation, socio-economic groups, and market mapping for GCSE Business Unit 2.

Market segmentation

The division of a market into smaller groups of consumers that share common needs and wants.

Mass-market product

A product that meets the needs of a wide range of consumers across various segments.

Niche product

A product or service that targets a specific section of a larger industry and market.

Target market

A particular group of consumers that a product or service is aimed at.

Geographic segmentation

Dividing a market by features of its geographical location, such as climate or region.

Geographic segmentation by climate

Dividing a market based on weather conditions, such as offering light clothing and sun-tan lotion in warm climates and warm, heavy clothing in cold climates.

Population density

A measurement calculated by the number of people living in one square kilometre of land, often classified as urban, suburban, or rural.

Geographic segmentation by region

Segmenting a market by continent, country, or town to target consumer tastes and preferences that are unique to or more prevalent in a particular area.

Demographic segmentation

Market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education.

Segmentation by age

Targeting products or services towards certain age groups based on how consumer needs and wants change through stages of the life cycle.

Lifestyle segmentation

Grouping consumers by their activities, interests, and opinions.

Segmentation by income

Dividing a market based on income levels under the assumption that consumers with similar income levels purchase similar types of products.

Socio-economic grouping

A UK ONS method of income, education, and employment segmentation.

Social grade AB

Higher & intermediate managerial, administrative, professional occupations.

Social grade C1

Supervisory, clerical & junior managerial, administrative, professional occupations.

Social grade C2

Skilled manual occupations.

Social grade DE

Semi-skilled & unskilled manual occupations, unemployed, and lowest grade occupations.

First Choice

A brand owned by TUI that targets consumers by providing cheap all-inclusive package holidays.

TUI Sensatori

A brand owned by TUI that targets higher-income consumers by offering luxury holidays.

Marella

The cruise line brand owned and operated by TUI.

Market mapping

A business tool used to identify gaps in a market by comparing products or brands against two key features (such as price and quality).