How can a business segment its market by location?

Location segmentation groups customers by where they live or work. A garden centre in a city might sell balcony plants, while a rural one sells large shrubs.

What does demographic segmentation mean?

Demographic segmentation groups customers by population characteristics. Examples include gender, ethnicity, family size and religion.

How can lifestyle be used to segment a market?

Lifestyle segmentation groups people by how they live, such as their hobbies, values and habits. A fitness brand might target people who run or cycle regularly.

Edexcel GCSE Business 1BS0

Enterprise and Entrepreneurship

Topic overview The dynamic nature of business Risk and reward The role of business enterprise

Spotting a Business Opportunity

Topic overview Customer needs Purpose and methods of market research Market research data and its reliability Market segmentation The competitive environment

Putting a Business Idea Into Practice

Topic overview Business aims and objectives Business revenues, costs and profits Cash and cash flow Sources of business finance

Making the Business Effective

Topic overview Business ownership and limited liability Franchising as a start-up option Business location The marketing mix Business plans

Understanding External Influences on Business

Topic overview Business stakeholders Technology and business Legislation and business The economy and business Responding to external influences

Growing the Business

Topic overview Organic and inorganic business growth Public limited companies and finance for growth Changes in business aims and objectives Business and globalisation Ethics, the environment and business

Making Marketing Decisions

Topic overview Product design, life cycle and differentiation Price and pricing strategies Promotion strategies and technology Place and methods of distribution Using the marketing mix to make business decisions

Making Operational Decisions

Topic overview Business operations and production processes Working with suppliers Managing quality The sales process

Making Financial Decisions

Topic overview Profit, profit margins and ARR Understanding business performance

Making Human Resource Decisions

Topic overview Organisational structures and communication Different ways of working Effective recruitment Effective training and development Motivation in the workplace

Spotting a Business Opportunity

Market segmentation

3 things to know
Paper 1

Overview

Segmenting a market by location, demographics, lifestyle, income and age, why segmentation helps targeting, and how a market map reveals gaps and competition.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What is a market segment?

Key term

What is market segmentation?

Key term

Name five ways a market can be segmented.

Questions from this subtopic

Each one with the model answer underneath.

1
What is a market segment?
Model answer
A market segment is a group of customers within a market who share similar characteristics. Each segment has its own needs and wants.
2
What is market segmentation?
Model answer
Market segmentation is dividing a market into groups of customers with similar characteristics. Each group can then be targeted with a suitable marketing mix.
3
Name five ways a market can be segmented.
Model answer
A market can be segmented by location, demographics, lifestyle, income and age.
4
How can a business segment its market by location?
Model answer
Location segmentation groups customers by where they live or work. A garden centre in a city might sell balcony plants, while a rural one sells large shrubs.
5
What does demographic segmentation mean?
Model answer
Demographic segmentation groups customers by population characteristics. Examples include gender, ethnicity, family size and religion.
6
How can lifestyle be used to segment a market?
Model answer
Lifestyle segmentation groups people by how they live, such as their hobbies, values and habits. A fitness brand might target people who run or cycle regularly.

See the rest and revise

Other ways to work this

The same content, four other ways.

What is inside Levo

Six ways to work the same material.

1Closed book

2Open book

3Closed book

See a huge jump in your memorisation

Answer cold, learn it, then prove it stuck. Levo tracks the jump between your first attempt and your last.

Enterprise and Entrepreneurship

Spotting a Business Opportunity

Putting a Business Idea Into Practice

Making the Business Effective

Cram a whole paper in one sitting

Sort every topic into what you know and what you do not, then drill only the weak ones.

Revenue = price × .

quantitycostprofit

Blank Blitz consolidates the facts

Rapid timed gap-fills on the terms and numbers you need to recall without thinking.

AGoods must be of satisfactory quality.

BGoods must be fit for purpose.

CGoods must be as described.

Build It trains answer structure

Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Cash inflows means money coming into a business.

TrueFalse

Test It catches misconceptions

Spot the fault in a statement. The traps are the mistakes students actually make.

721941163128510

Brain Breaks between sessions

Short focus games to reset attention, so the next set lands better than the last.

Every question in Spotting a Business Opportunity, on a schedule.

Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.

Start revising, £5 a month See how the method works

Or £46 a year, about £3.83 a month. Cancel anytime.