(a) Define the term market segmentation. (b) List six factors that influence market segmentation. (c)...

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.