1.2.3 - Market segmentation

Which of following best describes the term, market segmentation?

• The elements which influence whether a customer buys a product

• The proportion of total market sales sold by one business

• Dividing the market into different groups based on needs and wants

• The process of gathering and analysing data from the market place

Which of the following is a benefit to a business of segmenting a market?

• Increased risk of making inaccurate business decisions

• Market segments are always very easy to reach

• High sales levels are guaranteed

• The business is more likely to generate sales from its products

Which of the following is a type of segmentation based on how much a customer earns?

• Lifestyle

• Age

• Location

• Income

The method used to identify where a product is positioned in the market in terms of certain criteria, such as high priced/low priced, is best known as:

• Market segmentation

• Market share

• Market mapping

• Marketing mix

A business manufactures and sells vegetarian ready meals. Which type of market segmentation would the business most likely use?

• Location

• Lifestyle

• Gender

• Age

The target market of a Caribbean cruise ship holiday is couples aged 65 years and over with a keen interest in travel. This is an example of segmentation according to:

• Income and gender

• Age and location

• Lifestyle and age

• Gender and location

Segmenting the market can help a business because:

• Prices are more likely to be set that customers are prepared to pay

• Products developed will always successfully sell on the market

• The distribution channel chosen will always ensure high sales

• Promotion methods chosen will be guaranteed to reach the customer

Which of the following could be seen as the opposite criterion to “traditional” on a market map?

• Everyday

• Modern

• Luxury

• High quality

M&S sells clothes aimed at males, females, adults and children. This is an example of segmentation according to:

• Income and lifestyle

• Age and income

• Location and income

• Age and gender

Discount supermarkets, such as Aldi and Lidl, are most likely to segment the market according to:

• Gender

• Age

• income

• Lifestyle