Edexcel Business A Level Revision

Market Segmentation - the process of dividing a market into smaller sections which contain customers with similar needs and wants Market segmentation splits up a market into different types of segments to enable a business to better of target it's products to the relevant customers. Segments are usually measured in terms of sales volume or valu e Segmentation is possible because in almost all markets there are differences in factors such as: • Customers needs and wants • How customers buy • Location of customers • Knowledge & experience of customers Recognising and understanding these differences are the first Steps in an effective approach to market segmentation. ☆MAIN BASES OF SEGMENTATION☆ DEMOGRAPHIC > dividing a market into segments based on demographic variables such as age, gender, family, lifestyle, religion, nationality, ethnicity, occupation, Socio-economic group. BEHAVIOURAL > dividing a market into segments based on the different ...

Sampling - In market research, sampling means getting opinions from a number of people, chosen from a specific group, in order to find out about the whole group. It would be expensive and time-consuming to collect data from the whole population of a market. Therefore, market researchers make extensive use of sampling from which, through careful design and analysis, marketers can draw information about their chosen market. Primary research - Data gathered first hanf that is specifically designed and obtained for a specific business. These can come in the form of focus groups, observation, face-to-face surveys and online surveys Secondary research -involves using data collected by someone else that has not been designed specifically for the business requiring the information. This can come in the form of published market research reports, Google, ONS (official statistics), Media reports, Competitor materials. Sample size - The amount of data collected by the business from c...