Marketing, Competition And The Customer: How And Why Market Segmentation Is Undertaken (Copy)
Cheat Sheet: 3.1.4 Market Segmentation
What is Market Segmentation?
| Concept | Definition | Example | Quick Note |
|---|---|---|---|
| Segmentation | Splitting the market into groups of consumers with similar characteristics or needs | Sports brands target by age/gender | Helps focus marketing |
How Markets Can Be Segmented
| Basis | Explanation | Example |
|---|---|---|
| Age | Products for children, teens, adults, elderly | Toys for kids, anti-ageing creams |
| Socio-economic group | Income/class-based targeting | Luxury cars vs. budget airlines |
| Location/Geography | Based on region or climate | Winter clothes in cold regions |
| Gender | Male/female-focused products | Perfumes, cosmetics |
| Lifestyle/Interests | Based on hobbies/preferences | Gym memberships, gaming PCs |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Benefits of Segmentation
| Benefit | Explanation | Example |
|---|---|---|
| Better customer targeting | Marketing matches customer needs | Baby food ads in parenting magazines |
| Increased customer loyalty | Customers feel product is made for them | Nike custom shoes |
| Higher sales/profit | More effective use of promotion | Luxury hotels targeting wealthy travellers |
| Efficient marketing | Avoids wasting resources | Ads only shown to right audience |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Choosing Segmentation Method (Recommendations)
| Circumstance | Best Segmentation | Justification |
|---|---|---|
| Selling winter clothing | Location | Cold regions = more demand |
| Launching skincare range | Gender & Age | Target women aged 25–40 |
| Selling luxury cars | Socio-economic group | High-income buyers only |
| Marketing online gaming | Age & Lifestyle | Younger audience with gaming interest |
Quick Revision Bullets
- Segmentation = dividing market into groups with shared traits
- Bases = age, income/class, location, gender, lifestyle
- Benefits = targeted marketing, loyalty, ↑ sales, efficient promotion
- Correct method depends on product type & customer profile
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course