Market Segmentation & Targeting — GCSE Business Revision
Revise Market Segmentation & Targeting for GCSE Business. Step-by-step explanation, worked examples, common mistakes and exam-style practice aligned to AQA, Edexcel and OCR.
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Go to Marketing Mix: Product, Price, Place, PromotionWhat is Market Segmentation & Targeting?
Market segmentation is the process of dividing a broad consumer market into sub-groups of consumers (segments) based on shared characteristics. Targeting then involves a business deciding which of these segments to focus its marketing efforts on.
Board notes: Covered by all major boards (AQA, Edexcel, OCR). Students need to be able to identify different ways of segmenting a market and explain the benefits of a targeted approach for a business.
Step-by-step explanationWorked example
A car manufacturer segments the market. One segment is high-income families who want a safe, spacious car. Another is young, single people who want a small, stylish, and affordable car. The manufacturer then targets the family segment with its new 7-seater SUV, advertising it in family-oriented magazines.
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Common mistakes
- 1Thinking segmentation is just about age and gender. Markets can also be segmented by income, lifestyle, location (geographic), and buying behaviour.
- 2Confusing segmentation with market research. Market research is the tool used to gather the information needed to segment a market effectively.
- 3Assuming a business can target all segments. Most businesses have limited resources and must choose the segments they can serve most profitably and effectively, known as the target market.
Market Segmentation & Targeting exam questions
Exam-style questions for Market Segmentation & Targeting with mark-scheme style solutions and timing practice. Aligned to AQA, Edexcel and OCR specifications.
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Step-by-step method
Step-by-step explanation
4 steps · Worked method for Market Segmentation & Targeting
Core concept
Market segmentation is the process of dividing a broad consumer market into sub-groups of consumers (segments) based on shared characteristics. Targeting then involves a business deciding which of the…
Frequently asked questions
What are the main ways to segment a market?
The main methods are demographic (age, gender, income), geographic (where people live), psychographic (lifestyle, values), and behavioural (how they use a product or their loyalty).
Why is market segmentation important for a business?
It allows a business to better understand its customers' needs and tailor its products and marketing messages specifically for them, which is more efficient and effective than trying to appeal to everyone.