segmentation
Explain how and why groups of customers are targeted for selected products
What is segmentation?
Market segmentation is the division of a market into sub groups with similar characteristics. A business can then target these groups and develop products and services for each of them. There are several ways in which consumers can be split up into. These is geographically which includes location, demographically which includes gender, social class, age, income, ethnicity or religion, psycho graphically which includes lifestyle and personality, and finally behaviourally which includes type of user, high quality products, size and value.
Characteristics of segmentation
Business to Business
This is the process of a business selling their goods or service to other businesses. This can be between a manufacture and a wholesaler or a wholesaler and a retailer. For business to business the market can be divide into:
Age – Many businesses pay close attention to the ages of their customers which means that over 50’s can be seen as one segment, while teenagers ages 14-18 can be viewed as another segment. For teenagers, Hip hop CDs can be targeted for teenagers whereas Hits of the 90s can be suitable and see as more attractive for older buyers.
Gender – Businesses may choose to target either male or females because usually they differ in spending patterns. They take into consideration into what men and women both respond to for example cars, play stations, video games may be targeted more for men as they may show more interest, whereas perfumes, bags, shoes and clothes may be more attractive to women.
Social class – Markets are often divided into social groups. Classes are based on employment status and conditions. This kind of division is used in government reports and survey. The Institute of Practitioners in Advertising divides social class into six categories and they are used to decide which groups to target for promoting a product.
Income – Income is also
What is segmentation?
Market segmentation is the division of a market into sub groups with similar characteristics. A business can then target these groups and develop products and services for each of them. There are several ways in which consumers can be split up into. These is geographically which includes location, demographically which includes gender, social class, age, income, ethnicity or religion, psycho graphically which includes lifestyle and personality, and finally behaviourally which includes type of user, high quality products, size and value.
Characteristics of segmentation
Business to Business
This is the process of a business selling their goods or service to other businesses. This can be between a manufacture and a wholesaler or a wholesaler and a retailer. For business to business the market can be divide into:
Age – Many businesses pay close attention to the ages of their customers which means that over 50’s can be seen as one segment, while teenagers ages 14-18 can be viewed as another segment. For teenagers, Hip hop CDs can be targeted for teenagers whereas Hits of the 90s can be suitable and see as more attractive for older buyers.
Gender – Businesses may choose to target either male or females because usually they differ in spending patterns. They take into consideration into what men and women both respond to for example cars, play stations, video games may be targeted more for men as they may show more interest, whereas perfumes, bags, shoes and clothes may be more attractive to women.
Social class – Markets are often divided into social groups. Classes are based on employment status and conditions. This kind of division is used in government reports and survey. The Institute of Practitioners in Advertising divides social class into six categories and they are used to decide which groups to target for promoting a product.
Income – Income is also