1.2.3 market segmentation

what is market segmentation

-breaking down a market into sub-groups

-a sub group will have similar characteristics and needs

demographics

age

lifestyle

gender

income

lifestyle segmentation

segmentation that divides people into groups based on their opinions and the interests and activities they pursue

benefits of market segmentation

-Identifies opportunities for new product development

-can help differentiate products

-can focus on specific groups of customers

-builds close customer relationships

limitations of market segmentations

can be expensive

can cause missed opportunities elsewhere

-customer characteristics change over time