Theory question 106
MarketingCommerce 2 (essay)
(a) Define the term market segmentation.
(b) List six factors that influence market segmentation.
(c) State five advantages of advertising.
Show the model answer
Model answer
(a) Market segmentation is dividing a market into groups of consumers with similar characteristics or needs, so each group can be targeted.
(b) Any six: age; sex; income; geographical location; occupation; education; religion/culture; lifestyle; family size; social class.
(c) Any five: creates awareness of products; increases sales; informs/educates consumers; introduces new products; helps meet competition; supports mass production and lower costs; creates jobs; builds brand loyalty.
Explanation
(b) asks for the bases on which markets are divided.