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Segmentation
Study why businesses split markets into customer groups.
2
Objectives
10
Flashcards
10
Questions
90 min
Study time
AqaGcseBusinessMarketing
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Syllabus checklist
What you need to know
2 objective pages available
Types and use of segmentation2 objectives
- Explain how businesses use segmentation to target customers.
- Explain why businesses segment by gender, age, location and income.
Key terms
target customerssegmentationExplainbusinessestargetgenderagelocationincome
Exam tips
- Types and use of segmentation exam tip 1: Use precise subject-specific vocabulary when you explain how to explain how businesses use segmentation to target customers..
- Compare evidence for Types and use of segmentation: Compare the scenario evidence before evaluating segmentation, target customers: mention FreshFork, refer to break-even output or ?11,344, and explain the effect on the owner.
Common mistakes
- Types and use of segmentation common mistake 1: Answer by clearly explaining how to explain how businesses use segmentation to target customers..
- Do not turn segmentation, target customers into a generic Segmentation point: Start with the business evidence, explain how Types and use of segmentation changes the decision, then judge whether the benefit outweighs the cost or risk for Urban Stitch. Separate margin versus markup before writing the final recommendation.
Practice preview
- SolarSprout serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?7,051, sales of 886 units, and a 32% change in costs or demand. Which option best applies Explain how businesses use segmentation to target customers?
- QuickFix Repairs serves commuters while opening a second outlet; the case evidence includes net profit margin of ?10,227, sales of 572 units, and a 24% change in costs or demand. Which option best applies Explain how businesses use segmentation to target customers?
- CraftCrate serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?9,530, sales of 740 units, and a 27% change in costs or demand. Which option best applies Explain how businesses use segmentation to target customers?
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