2. What is segmentation?
Segmentation is the division within markets.
Market segmentation is often compared to the
inside of an orange- small pieces that make up a
whole.
It is when customers are divided up into groups
or sub-groups each of which responds
differently to different products or marketing
approaches.
3. Demographic segmentation
There are 4 different types of demographic segmentation:
-age: this is important because it allows the business to
target this specific audience so they can tailor their
products and promotions effectively.
Products such as toothpaste and toys are all segmented.
-gender: some products are aimed specifically at males or
females, for example clothing and household products.
-social class: classes people according to their
occupation, this relates to income but also tastes, and
social activities.
-residential: displays the differences in interest and tastes
between neighbourhoods. E.g. The difference between
people living in detached suburban houses and terraced
houses in rural areas.
