Practice Flashcards
Flip to reveal answersWhat is market segmentation?
Track your progress — Sign up free to save your progress and get smart review reminders based on spaced repetition.
All 20 Flashcards — Market segments and segmentation
Sign up free to track progress and get spaced-repetition review schedules.
Question
What is market segmentation?
Answer
Dividing a market into groups of customers with similar characteristics, then targeting them with tailored marketing.
💡 Hint
Divide into groups + target
Question
Four segmentation bases?
Answer
Demographic, Geographic, Psychographic, Behavioural.
💡 Hint
D-G-P-B
Question
Three benefits of segmentation?
Answer
Products match needs better, marketing more cost-effective, identifies gaps, charge different prices.
💡 Hint
Match, target, gaps, price
Question
Segmentation = dividing market into groups with shared ___
Answer
Characteristics that influence purchasing behaviour.
💡 Hint
Characteristics
Question
Two limitations of segmentation?
Answer
Expensive to research multiple segments, segments may be too small, preferences change.
💡 Hint
Costly, too small, changing
Question
Mnemonic for segmentation bases?
Answer
'Did George Play Basketball?' — Demographic, Geographic, Psychographic, Behavioural.
💡 Hint
DGPB
Question
What is a market segment?
Answer
A group of consumers sharing characteristics that influence purchasing behaviour.
💡 Hint
Shared traits → similar buying
Question
Four bases: D-G-P-B stands for?
Answer
Demographic, Geographic, Psychographic, Behavioural.
💡 Hint
Did George Play Basketball
Question
Why can segmentation be expensive?
Answer
Separate research and campaigns for each group costs more than one generic approach.
💡 Hint
Multiple campaigns = cost
Question
Benefits: better targeting, higher sales, identifies ___
Answer
Market gaps — opportunities for new products.
💡 Hint
Gaps
Question
Examples of demographic segmentation?
Answer
Age, gender, family size, income level, education, occupation.
💡 Hint
Personal characteristics
Question
Why segment rather than one-size-fits-all?
Answer
Tailored products and marketing are more effective — better match what groups want.
💡 Hint
Targeted > generic
Question
Examples of psychographic segmentation?
Answer
Lifestyle, values, personality, interests, attitudes.
💡 Hint
How people think + live
Question
Risk of over-segmenting?
Answer
Segments too small to be profitable — not enough customers per group.
💡 Hint
Too small = unprofitable
Question
Limitations: costly, too small, preferences ___
Answer
Change over time — segments aren't permanent.
💡 Hint
Change
Question
Segmentation targets ___ groups with ___ marketing
Answer
Specific groups with tailored marketing.
💡 Hint
Specific + tailored
Question
Quick: A market segment = customers sharing ___ that affect ___
Answer
Characteristics that affect purchasing behaviour.
💡 Hint
Characteristics + buying
Question
Why might segmentation miss customers?
Answer
Not everyone fits neatly into defined groups — some fall between segments.
💡 Hint
People don't fit boxes
Question
Exam definition: market segment?
Answer
A group of consumers sharing one or more characteristics that influence purchasing behaviour.
💡 Hint
Shared characteristics + buying
Question
Sportswear segmented by age, income, activity — which bases?
Answer
Age/income = demographic. Activity = behavioural.
💡 Hint
Demographic + behavioural
Read the notes
Full study notes for Market segments and segmentation
Topic 4.1 hub
Introduction to marketing
More from Topic 4.1
All flashcards in this topic
BM exam skills
Paper structures & tips
Track your progress with spaced repetition
Sign up free — Aimnova tells you exactly which cards to review and when, so you remember everything before your IB exam.
Start Free