What is market segmentation? Market segmentation is the technique used to enable a business to better target its products at the right customers by splitting its customers into manageable groups. It is about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs.

Unit 3 P5 – How-To-Guide This task looks at market segmentation. The following slides will help you structure your task.

Paragraph 1: Customers, Consumers and Buyers A consumer is… Introduction Paragraph 1: Customers, Consumers and Buyers A consumer is… A buyer is… The difference between a buyer and consumer is… Paragraph 2: Business-To-Business Market A business to business market is... An example of this would be…

Paragraph 1: What is market segmentation? Market segmentation is… Bases of Segmentation Paragraph 1: What is market segmentation? Market segmentation is… The reason why a business segments a market is… This could help Paragraph 2: Psychographic Psychographic segmentation concerns… They may choose to locate their branch in an area where customers like holidays because… This means that… Paragraph 1: Geographic Geographic segmentation is… Thomas Cook could segment is market like this by… This means that… Paragraph 3: Socio-Cultural Socio-cultural segmentation is… Thomas Cook could segment is market like this by offering… This means that… Paragraph 4: Demographic Segmenting by demographic means… Thomas Cook could segment is market like this by… This means that…

Thomas Cook would use ACORN to… This means that… ACORN and MOSAIC Paragraph 1: ACORN ACORN is… Thomas Cook would use ACORN to… This means that… Paragraph 2: MOSAIC MOSAIC is… Thomas Cook would use MOSAIC to… By doing this Thomas Cook will make better decisions because…

In a holiday, children want… HOT TIP: Businesses segment their markets so they can spread risk, attract more customers, gain higher demand, have happier customers and increase their sales. Thomas Cook will want loyal customers and by splitting them up into smaller groups, they can manage their needs better. Six Segments Paragraph 2: Children In a holiday, children want… Thomas Cook would target children because… Therefore Thomas Cook can provide the best family holidays… The benefit of this for Thomas Cook is… Paragraph 1: Families In a holiday families look for… Thomas Cook would target families because… Therefore Thomas Cook can provide the best family holidays… The benefit of this for Thomas Cook is… Paragraph 3: Singles Singles usually want holidays where… Thomas Cook would target singles because… Therefore Thomas Cook can provide the best family holidays… The benefit of this for Thomas Cook is…

Paragraph 4: Business Travellers Six Segments HOT TIP: Businesses segment their markets so they can spread risk, attract more customers, gain higher demand, have happier customers and increase their sales. Thomas Cook will want loyal customers and by splitting them up into smaller groups, they can manage their needs better. Paragraph 4: Business Travellers Business travellers will be looking for… Thomas Cook would target business travellers because… Therefore Thomas Cook can provide the best trips for business travellers by… The benefit of this for Thomas Cook is… Paragraph 5: Weddings Wedding parties would look for… Thomas Cook would target wedding parties because… Therefore Thomas Cook can provide the best wedding holidays by… The benefit of this for Thomas Cook is… Paragraph 6: Schools School will look for trips to be… Thomas Cook would target schools because… Therefore Thomas Cook can provide the best trips for schools by… The benefit of this for Thomas Cook is…