Q&A - What is market segmentation?
Market segmentation is the technique used to enable a business to better target it products at the right customers. It is about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs.
Segments are usually measured in terms of sales value or volume. In the diagram below, segment B is twice the size of segment C:
Why do businesses need to segment their markets? Because customers differ in the…
- Benefits they want
- Amount they are able to or willing to pay
- Media (e.g. television, newspapers, and magazines) they see
- Quantities they buy
- Time and place that they buy
There are various methods (or “bases”) a business can use to segment a market. Some of the most populare are summarised below:
These intensive one-day exam coaching & revision workshops are designed to help AS Business students maximise their performance in the BUSS1 & BUSS2 exams later this term. Through a series of intensive sessions, we focus on and build techniques that enable students to meet the assessment objectives. The main focus on each session is BUSS2, but we'll also dip into key BUSS1 topics and develop effective exam technique proven to work for both exams.