1.2.3 Market Segmentation & 1.2.4 Competition

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