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: Give two examples of how a clothing store might segment its market.

Answer: 1. By age groups, such as teenagers and adults. 2. By lifestyle, such as casual wear and formal wear.

Question 3: Explain why a toy company might choose to target children aged 3-8 years old.

Answer: Because children in this age group are the primary users of toys designed for their developmental needs, making them the main customers for the company's products.

Question 4: Describe a scenario where a sports shop might segment its customers based on interests.

Answer: The shop might target customers who are interested in running, football, or tennis, offering products specifically for each sport.

Question 5: Draw a simple diagram showing how a business might divide its market into three segments: age, income, and interests. Label each segment clearly.

Answer: A Venn diagram or three separate circles labeled 'Age', 'Income', and 'Interests', with overlapping areas showing potential target groups.

Question 6: Imagine a bakery wants to target health-conscious customers. Describe two ways they could do this.

Answer: They could offer gluten-free or low-sugar options, and advertise their products as healthy or organic.

Question 7: Explain how understanding market segmentation can help a business to be more successful.

Answer: It helps the business target the right customers with suitable products and marketing, leading to increased sales and customer satisfaction.

Question 8: List three characteristics that a company might use to segment its market.

Answer: Age, income level, lifestyle, location, interests.

Question 9: A company sells luxury watches. Who do you think their main target market is? Why?

Answer: Their main target market is likely wealthy adults who can afford luxury items because they are willing to spend more on high-end watches.

Question 10: Describe how a mobile phone company might use market segmentation to develop different products.

Answer: They might create basic, affordable phones for budget-conscious consumers and advanced, feature-rich phones for tech-savvy customers.