(a) Define the term market segmentation.
(b) List six factors that influence market segmentation.
(c) State five advantages of advertising.
Explanation
(a) Market segmentation refers to the division of a market into identifiable sub-markets/groups. This enables the marketer to reach each submarket with the most appropriate blend of marketing variables/mix.
(b) Factors that influence market segmentation:
(i) Population density/Demographic /Occupation
(ii) Usage
(iii) Age of consumers
(iv) Sex of consumers
(v) Income level of consumers
(vi) Educational attainment of consumers
(vii) Social class/status of consumers
(viii) Cultural background of consumers
(ix) Religious beliefs
(x) Buyer— behaviour/Tastes
(xi) Geographic/Weather/Climatic factor
(c)Advantages of Advertising:
(i) It promotes sales by stimulating demand of a product.
(ii) It creates awareness about the availability of goods and services.
(iii) It educates the consumers on the use of product.
(iv) It helps to improve quality of goods and services as a result of healthy competition.
(v) It leads to mass production by creating a wider market.
(vi) It boosts and sustains company's image.
(vii) It helps in developing brand loyalty.
(viii) It is used to launch new products.
(ix) It creates employment opportunities.