1.2.3 Market segmentation - Word Drop

Market ______ is the division of a market into smaller groups of consumers that share common needs and wants. Businesses use it to differentiate their products and to market them more effectively.

A market can be segmented by ______, which looks at the geographical area where consumers live, such as a warm climate or a city with a high population density. Segmentation by ______ uses characteristics such as gender, religion and family size. Segmentation by ______ groups consumers by their activities, interests and opinions, such as an interest in sailing.

Segmentation by ______ assumes that consumers with similar earnings buy similar products, so lower earners focus on necessities while higher earners buy luxuries. Segmentation by ______ targets one stage of the life cycle, for example children or retired people.

Market ______ is a tool that compares the brands in a market using two features, usually price and quality. It helps a business to spot ______ in the market, which are places where demand exists but no product yet meets it, and to see where ______ are already positioned.