Market Segmentation

Market Segmentation

1. Markets can be divided up into segments

   • Each segment has consumers with similar traits
     • Businesses analyse these traits and develop products for each segment

2. Demographic Segementation

   • Age
   • Gender
   • Income
   • Social Class
   • Ethnicity
   • Religion

3. Geographic Segementation

   • This is when the market is split up based on the location of consumers as where they live can affect their needs
     • I.E. Someone living in Africa will not buy the clothing that thoese in Russia would due to climatic Differences

4. Mass Markets

   • This is when a business sells the same product to all market segments. This is often fast moving consumer goods such as crisps and cereals. Mass markets have a lot of competition so require high marketing budgets

5. Niche Markets

   • This the opposite of a mass market as a business will market a product to a specific segment. There is less competition in a niche market so it is easier to focus on the needs of a customer

6. Benefits of Market Segmentation

   • By producing for different segments businesses are able to gain more revenue
   • Customers could be more loyal to a business as a product will feel tailored to them
   • Promotional material will not be wasted on those who product is not relevant to