What is market segmentation?
The process of splitting up a business into different departments
The process of splitting up a target market into different groups
The process of splitting up the products of a business into different categories
What does geographical segmentation refer to?
Splitting up a target market based on location
Splitting up a target market based on the sports the people play
Splitting up a target market based on how much money the people earn
What does demographic segmentation relate to?
Demographic segmentation considers where people are located
Demographic segmentation considers people’s interests and hobbies
Demographic segmentation considers people’s characteristics
Which of these are not examples of demographic segmentation?
Age, gender, race and religion
Nationality, disability, ethnicity and sexual orientation
Income, location, behaviour and purchasing habits
What is the purpose of a market map?
To identify a gap in the market
To identify where other businesses are located
To see how much competitors charge for their products
What are two elements that are commonly measured on a market map?
The size of the business and price
Quality and price
Location and nationality
What is a gap in the market?
An area of the market where there is demand, but no or little supply of a product
An area of the market that is highly populated by other products and services
An area of the market where there is no demand but a lot of supply
Which of the following is true about income segmentation?
A budget brand selling its own branded products may target customers with a high level of income
A luxury brand charging high prices may target customers with a low level of income
A luxury brand charging high prices may target customers with a high level of income
Which of these is an example of using age as a method of segmentation?
Designing a toy aimed at children
Designing an expensive product
Designing a product aimed at women
Purchasing behaviour at different times of the year and in different situations relates to what kind of segmentation?
Income
Geographical
Behavioural