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Qualifications Cambridge National Enterprise & Marketing Topic Area 2: Market research to target a specific customer

2.5 Types of market segmentation

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Which type of market segmentation groups customers by the kind of paid work that they do?
Occupation
What is meant by segmenting a market by income?
Grouping customers by the amount of money they have available to spend
What is meant by segmenting a market by lifestyle?
Grouping customers by their interests and free time activities
What is a likely problem for a business that does not segment its market?
Its marketing budget is wasted on customers who are unlikely to buy
Which of these lists contains only ways of segmenting a market?
Age, gender and location
What is meant by segmenting a market by gender?
Grouping customers by whether they are male or female
Segmenting customers by the region of the country they live in is known as segmentation by
Location
What is meant by market segmentation?
Dividing customers into groups that share common characteristics
Which is an example of segmenting a market by age?
A garden centre gives a discount to customers over 65
A fragrance brand advertises a new perfume only in magazines aimed at women. What is the main benefit of targeting one gender?
Money is not spent reaching people unlikely to buy
A business sells waterproof clothing to people who work outdoors. Why might it choose this group?
These workers have a greater need for the product
Which statement explains why businesses segment customers by income?
It shows which customers can afford luxury products
A takeaway in Leeds pays for leaflets to be delivered to homes in London. Why is this unlikely to succeed?
The leaflets reach people who live too far away to buy the food
An online shop uses social media to find people who enjoy walking and camping. Why is lifestyle segmentation suitable for this shop?
It lets adverts be aimed at people whose interests match the products
What is a target market?
A group of customers that a product is aimed at
A business writes one advert for all of its customers. What problem is it most likely to face?
The message is too general to appeal strongly to any group
Which of these is a benefit of taking a targeted approach to marketing?
It helps the business understand what its customers want
A small business aims all of its products and adverts at one clear group of customers. What is a likely benefit of this targeted approach?
It helps the business build a brand that customers trust
A clothing company sells the same plain range to every customer and never groups its market. Which problem is it most likely to face?
Rivals that target groups of customers may take its sales
Why do many businesses segment their market by age?
People of different ages tend to need different products
A garden centre wants to sell large trees that need a lot of space to grow. Why might it target customers who live in villages?
These customers are more likely to have room for the trees
A business aims its products at customers who enjoy gardening. How is this targeting most likely to increase its profits?
It sells more to customers whose needs are met