A1 Understanding Market Targeting and Segmentation

What is the primary reason enterprises target specific markets?

• To increase production costs

• To focus marketing efforts and resources effectively

• To decrease product quality

• To expand into unrelated industries

Which of the following is a demographic factor used in market segmentation?

• Location

• Lifestyle

• Age

• Spending habits

What does the term 'psychographic segmentation' refer to?

• Dividing the market based on geographical areas

• Grouping customers by their social class, attitudes, and lifestyle

• Segmenting the market by age and gender

• Categorising customers by their spending habits

Which type of market involves selling products directly to consumers?

• Business to Business (B2B)

• Business to Consumer (B2C)

• Niche market

• Mass market

What is a key characteristic of a niche market?

• It targets a broad audience

• It focuses on a specific, well-defined segment

• It is not influenced by consumer preferences

• It is always more profitable than mass markets

Which of the following is an example of behavioural segmentation?

• Ethnicity

• Income level

• Loyalty status

• Education level

What is the main advantage of geographic segmentation?

• It allows businesses to ignore local preferences

• It helps tailor marketing strategies to specific locations

• It reduces the need for market research

• It increases the complexity of marketing campaigns

Which of the following is NOT a factor in demographic segmentation?

• Religion

• Personality characteristics

• Family size

• Education level

Which market type is characterised by selling products to other businesses?

• Business to Consumer (B2C)

• Niche market

• Business to Business (B2B)

• Mass market

What is the primary goal of market segmentation?

• To increase the number of products offered

• To identify and target specific groups of consumers

• To reduce the cost of production

• To expand into international markets