Why is identifying and understanding customers so important?
Leads to businesses beating their competitors
Leads to businesses generating sales and surviving
Leads to businesses splitting up their target market
How would generating more sales help a business?
It would lead to the business making a loss
It would lead to the business making a profit
It would lead to the business bringing out more product lines
What is segmentation?
Splitting up the business into different departments
Splitting up the target market into different groups
Splitting up the products of a business into different categories
What does geographic segmentation refer to?
Splitting a target market based on location
Splitting a target market based on the sports they play
Splitting a target market based on how much money they earn
Which of the following is true about income segmentation?
A budget brand selling own branded products would target customers with a high level of income
A prestige brand charging high prices may target customers with a low level of income
A prestige brand charging high prices may target customers with a high level of income
Which is an example of age being used as a method of segmentation?
A business designing a toy aimed at children
A business designing an expensive product
A business designing a product aimed at females for Christmas
What does business survival mean?
Aiming to keep operating for 1 month
Aiming to keep operating for at least 12 months
Aiming to make a profit in the first year of business
What are the five key areas of segmentation?
Age, gender, income, geographic, lifestyle
Age, time, income, geographic, lifestyle
Age, gender, hobbies, geographic, lifestyle
What is not one of the three reasons why businesses segment markets?
Target the right products at the right people
Increase sales and profits
Reduce overall business costs
What category of segmentation do age and gender fall under?
Demographic
Geographic
Lifestyle