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, specific groups of consumers who have similar needs or characteristics.

Question 2: Give two examples of demographic factors that businesses might use to segment their market.

Answer: Age and income level.

Question 3: Describe a scenario where a business might target an emotional segment of customers. Include the type of product and the target group.

Answer: A company selling luxury chocolates targets customers who seek indulgence and emotional pleasure, such as adults celebrating special occasions.

Question 4: List three geographic factors a business could consider when segmenting its market.

Answer: Location (city or countryside), climate, and region.

Question 5: Explain why a sports clothing brand might target teenagers as a specific segment of the market.

Answer: Because teenagers are interested in fashion and sports, and they often influence trends, making them a lucrative target for sports clothing.

Question 6: Identify a product that might be aimed at the 'lifestyle' segment of customers and explain why.

Answer: Organic skincare products aimed at environmentally conscious consumers who value health and sustainability.

Question 7: Sketch a simple diagram showing how a business can divide its market into segments. Label the segments clearly.

Answer: A large circle labeled 'Market' with smaller circles inside labeled 'Age groups,' 'Location,' 'Lifestyle,' and 'Income levels.'

Question 8: Imagine you are launching a new brand of energy drinks. Describe two different market segments you might target and how you would appeal to each.

Answer: You might target athletes by emphasizing performance benefits and health, and target busy professionals by highlighting convenience and energy boosts.

Question 9: Why is it important for businesses to segment their market? Give two reasons.

Answer: It helps businesses tailor their marketing to specific groups, making their advertising more effective. It also allows them to meet the specific needs of different customer groups, increasing sales.

Question 10: Sketch a profile of a typical customer for a luxury watch brand. Include at least three characteristics.

Answer: A sketch should include characteristics such as high income, interest in fashion and status, and aged between 30-50 years.