Theory question 108
MarketingCommerce 2 (essay)
(a) Explain the meaning of market segmentation.
(b) List and explain four factors to be considered in segmenting a market.
Show the model answer
Model answer
(a) Market segmentation is dividing the whole market for a product into smaller groups of buyers who have similar needs or characteristics, so the firm can target each group.
(b) Any four, explained: age; sex/gender; income level; geographical location; occupation/social class; religion/culture; education; lifestyle/tastes; size of family.
Explanation
Factors in (b) are the characteristics used to group buyers.