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Define the term market segmentation - Leaving Cert Business - Question C - 2015
Question C
Define the term market segmentation. Illustrate two methods a business could consider to segment its market.
Worked Solution & Example Answer:Define the term market segmentation - Leaving Cert Business - Question C - 2015
Step 1
Define the term market segmentation.
Answer
Market segmentation refers to the process of dividing a broad target market into smaller, more identifiable sections that share common characteristics. This allows businesses to identify specific target markets and develop tailored marketing strategies. By distinguishing these segments, companies can better address the varying needs and preferences of different consumer groups.
Step 2
Illustrate two methods a business could consider to segment its market.
Answer
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Demographic Segmentation: Businesses can segment their market based on demographic factors such as age, income, gender, and education. For instance, products like toothpaste may be marketed differently to children and adults, as their dental needs vary significantly.
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Geographic Segmentation: This method involves segmenting the market based on geographic factors such as nations, cities, regions, and neighborhoods. For example, a company might create distinct marketing strategies for urban versus rural areas, addressing the specific needs and preferences of each population.