2.6 Benefits of market segmentation - Word Drop

Market segmentation divides customers into ______ that share common features. This helps a business to aim at a particular market instead of all customers. As a result, its marketing can be more ______, so the business does not ______ money on people who are unlikely to buy.

Segmentation also helps a business to match the specific ______ of its customers. Customers who feel understood are more likely to stay loyal, so customer ______ improves. A loyal base of customers can also increase market ______, which is the percentage of total sales in a market held by one business.

A targeted approach can raise sales and lead to higher ______, which is the money left after all expenses are paid. It also helps the business to develop a strong ______, so customers recognise its products and trust them. Avoiding spending on people outside the segment lowers its marketing ______, the amount it pays for promotion.

The business also gains a better ______ of what its target market wants. Finally, it helps the business to develop ideas for ______, such as expanding into new products or markets.