Q&A - What is market segmentation?

Market segmentation is the technique used to enable a business to better target it products at the right customers.  It is about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs.

Segments are usually measured in terms of sales value or volume. In the diagram below, segment B is twice the size of segment C:

 

Why do businesses need to segment their markets? Because customers differ in the…

  • Benefits they want
  • Amount they are able to or willing to pay
  • Media (e.g. television, newspapers, and magazines) they see
  • Quantities they buy
  • Time and place that they buy

There are various methods (or “bases”) a business can use to segment a market. Some of the most populare are summarised below:

 

Job board

Chemistry Teacher

Oakley College, Las Palmas, Gran Canaria.

Join the tutor2u community

With a tutor2u account you can access extra features to support your teaching & learning.

Subscribe to the daily digest

Curate your own content

Track your training schedule

Manage your resource library

Receive job alerts

Join the community

Already joined? Sign in now ›

More From the Digital Store

Editable topic-by-topic PowerPoints explaining every topic for Units 3.1 - 3.6 of AQA A Level Business.

£100.00 (+VAT)

AQA A Level Business Year 1 (AS) Teacher PowerPoint Presentations

This exam-style and exam-standard Unit Assessment is for Edexcel Theme 3: 3.3 (Decision-making techniques) and 3.4 (Influences on business decisions).

£15.00 (+VAT)

Edexcel A Level Business Unit Assessment (Theme 3.3 & 3.4)

This activity makes use of four case study businesses to give students practice of calculating contribution and the break-even point, and of analysing the impact of changes in costs or...

£5.00 (+VAT)

Breakeven Roll of the Dice

Recruitment

Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u