Question 1: Define the term 'market segmentation' in your own words.

Answer: Market segmentation is the process of dividing a broad target market into smaller groups of consumers with similar needs, preferences, or characteristics.

Question 2: Name two different ways a business might segment its market.

Answer: Possible ways include demographic segmentation (age, gender, income) and geographic segmentation (location, region).

Question 3: Imagine a sports clothing brand wants to target young athletes. Which types of segmentation might they consider? List at least two.

Answer: They might consider demographic segmentation (age, gender) and psychographic segmentation (lifestyle, interests).

Question 4: A toy company wants to sell a new line of educational toys. Describe a potential target market based on age.

Answer: The target market could be children aged 4 to 8 years old who are in primary school and enjoy learning through play.

Question 5: Explain why understanding different market segments can help a business succeed.

Answer: Understanding market segments helps a business tailor its products and marketing strategies to meet the specific needs of different groups, increasing sales and customer satisfaction.

Question 6: A café in a busy city centre wants to attract office workers during lunchtime. Which segment might they target and why?

Answer: They might target working professionals who need quick, affordable lunch options, because this group is likely to visit during their break times.

Question 7: Draw a simple diagram to show how a business might divide a market into three segments: age groups, income levels, and locations. Label each segment clearly.

Answer: A Venn diagram or a flowchart with three sections labeled 'Age', 'Income', and 'Location'. Each section overlaps with others to show different combinations of segments.

Question 8: Why might a business choose to focus on only one market segment instead of trying to appeal to everyone?

Answer: Focusing on one segment allows the business to better meet the needs of that group, use resources more efficiently, and stand out from competitors.

Question 9: Sketch a simple logo or symbol that could represent a brand targeting teenagers interested in gaming. Use the space below.

Answer: A simple, modern logo incorporating elements like a game controller or a digital interface, designed to appeal to teenagers.