(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.