Question 1: Define market segmentation in your own words.

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

Question 2: List three common bases or criteria used to segment a market.

Answer: Demographic (age, gender, income), geographic (location), psychographic (lifestyle, interests), behavioral (buying habits, loyalty).

Question 3: Explain why a clothing retailer might choose to target teenage consumers as a specific market segment.

Answer: Because teenagers have distinct fashion preferences, active lifestyles, and social media habits, allowing the retailer to tailor products and marketing to appeal to this group.

Question 4: Identify and describe two advantages of market segmentation for a business.

Answer: It allows businesses to target specific groups more effectively, increasing sales and customer loyalty. It also helps allocate marketing resources more efficiently by focusing on the most promising segments.

Question 5: Imagine a new health food product aimed at active young adults. Describe two possible ways the company could segment this market.

Answer: By age (e.g., 18-25 years old) and lifestyle (e.g., fitness enthusiasts or students who prioritize healthy eating).

Question 6: Draw a simple diagram to illustrate how a company might segment a market based on age groups and lifestyle preferences.

Answer: A Venn diagram with two overlapping circles: one labeled 'Age groups (e.g., 18-25, 26-35)' and the other labeled 'Lifestyle (e.g., fitness-focused, health-conscious)'. The overlapping area shows the target segments.

Question 7: Describe how geographic segmentation can influence a business’s product offerings.

Answer: Businesses may adapt products to suit local climates, cultural preferences, or regional needs, such as offering warmer clothing in colder regions or spicy food in areas where cuisine is popular.

Question 8: A toy company wants to develop a new product line for children aged 3-5. What are two key factors they should consider when segmenting this market?

Answer: Safety standards (age-appropriate toys) and developmental needs (toys that support learning and motor skills).

Question 9: Explain the difference between demographic and psychographic segmentation.

Answer: Demographic segmentation is based on measurable characteristics like age, gender, or income. Psychographic segmentation is based on lifestyle, values, interests, and personalities.

Question 10: Suggest a marketing message tailored for a luxury skincare brand targeting high-income women aged 40 and above.

Answer: A message that emphasizes exclusivity, quality, and anti-aging benefits, such as 'Experience the luxury of youthful, radiant skin with our premium skincare collection.'