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Market segmentation is where a business splits the market into different groups of people with similar characteristics. Businesses may do this as part of their market research.
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The market can be split into segments of different age groups. For example:
- A teddy bear could be aimed at children aged from about three to seven years old.
- Romance stories could be aimed at teenagers aged between 15 and 19.
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The market can be divided up depending on the sex of the consumers. For example:
- A sharp, strong razor could be aimed at boys.
- Lipstick could be aimed for girls.
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The market can be divided depending on the location of the consumers. For example:
- Wellington Boots could be aimed for people living in the countryside, rather than city residents.
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This is where the market is divided into groups based on the incomes of the consumers. The following ranks are available:
- Rank A: An example of a job in this rank includes a successful business owner.
- Rank B: Examples of jobs in this rank includes headteachers and bank managers.
- Rank C1: An example of a job in this rank is a teacher.
- Rank C2: Examples of jobs in this rank includes mechanics, and clerical workers.
- Rank D: Part time jobs and cleaners are normally found in this rank.
- Rank E: People in this rank are normally unemployed.
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Products can be aimed at parts of the market that have specific interest and hobbies. For example:
- Fishing equipment would probably be only advertised in fishing magazines, to target more fishers.
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The market can be divided based on religion. For example:
- Products aimed at Muslims would not contain Pork, as they are not allowed to eat that.
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