BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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People have different hobbies and interests, which can be connected to income and location.
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Consumers live in different parts of the country and will have different tastes and needs. Those living in the city might want a smaller car
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The population can also be divided into; low income, middle income and high income.
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Age groups can be split into categories e.g. 0-10, 11-16 or 18+. Or even by young and old
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Detailed explanation-1: -Income segmentation considers how much people earn and how much disposable income they have. This is extremely important for certain products. For example, a business selling high-end luxury cars or expensive jewellery would need to target people with a high level of income.
Detailed explanation-2: -Markets can be segmented in several ways such as geographically, demographically, or behaviorally. Market segmentation helps companies minimize risk by figuring out which products are the most likely to earn a share of a target market and the best ways to market and deliver those products to the market.
Detailed explanation-3: -Five ways to segment markets include demographic, psychographic, behavioral, geographic, and firmographic segmentation.
Detailed explanation-4: -Consumer markets can be segmented using a multitude of variables from four main categories: Demographic: age, years of education, income, family size, gender, race, marital status. Geographic: Rural/urban, climate, radius, neighborhood, nearby resources and amenities.