Explain the term market segmentation and discuss different market segments. Market Segmentation is the technique businesses use when dividing people in section or group by segmenting them by age, gender, level of education, occupation and area of living. Businesses segments people so that they can target their products or service at the right customers. Market Segmentation is also about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs. There are four market segments that businesses use which are: Geographic
Geographical segmentation is when businesses segments where people live. Different regions of the country have different cultures and the type of area it is might influence the way people spend their money. This could be like saying that London people socialize more than people in Wales, for example, has different traditions to those living in parts of the south-east of England or and other example an average teenager living in Western- Super-Mare might have different spending habits than teenagers living in cities like Birmingham and Manchester. Businesses can use this information to target customers more effectively. Demographic
Demographic segmentation is when business segment people by gender, age, income, sexual orientation and education level are common demographic variables. Some brands are targeted only to women, others only to men. Music downloads tend to be targeted to the young, while hearing aids are targeted to the elderly. Demographic segmentation almost always plays some role in a segmentation strategy. Segments in this classification include: Age
For example in age classification, those in the 60+ age group are often referred to as the grey pound. This group are increasing in...
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