Knowing your Customers - What are Market Segments?
Many businesses will divide their market (their customers) into different groups.These groups will have some common characteristics and are referred to as 'market segments'.
The business will try to identify particular things that you might associate with that group of people. It might be something to do with their age, gender (whether they are male or female), where they live, what they buy and so on.
You could probably do some market segmentation classification yourself. Look at the images below and write down five types of products or services you think that the people suggested might buy. Again, we have done one for you as an example.
Example
- They are likely to buy wine rather than beer
- They will go to clubs
- They are likely to go to health clubs or the gym
- They will spend money on hair and clothes
- They will buy make-up from expensive shops
Two couples pay in cafe. © Photolibrary Group
Your Turn:
Young family out shopping © iStock.com
Young man climbs indoors. © iStock.com
Golfer drives. © iStock.com
Night out. © iStock.com
Trainee hairstylists. © iStock.com
Spa holiday woman. © iStock.com
Young person plays computer game. © iStock.com
Young girl in library. © iStock.com