Key terms
What is market segmentation?
Dividing a large market into smaller groups of customers with similar needs or characteristics.
Which type of segmentation looks at age, gender, and income?
Demographic segmentation.
A product sold to almost everyone, like bread or milk, is usually aimed at which type of market?
Mass market.
Qantas is more likely to target premium travellers or budget travellers?
Premium travellers
What does cost of living mean for many Australian customers right now?
They are trying to save money and are more careful about spending.
What is a target profile?
A description of the ideal customer a business wants to attract.
Which type of segmentation looks at where customers live?
Geographic segmentation.
A custom surfboard business aimed at serious surfers is an example of what kind of market?
Niche market.
Jetstar is more likely to target customers who value what most?
Low prices / affordability / budget travel.
How has the cost-of-living trend changed shopping behaviour?
More people are buying cheaper products, discounts, or home-brand items.
What is a mass market?
A very large market where a product is aimed at lots of people or almost everyone.
Which type of segmentation looks at lifestyle, values, and interests?
Psychographic segmentation.
Why might a small business choose a niche market instead of a mass market?
Because it can focus on a specific group, meet specialised needs, and avoid competing directly with large businesses.
Cotton On Kids targets which demographic group?
Parents and children / families with children.
What is the green shift?
A trend where more customers prefer environmentally friendly or sustainable products.
What is a niche market?
A small, specific part of a larger market with particular needs or interests.
Which type of segmentation looks at buying habits, loyalty, or how often people use a product?
Behavioural segmentation
Is Kmart more likely to use a mass market or niche market approach?
Mass market.
What type of segmentation method does Cotton On use?
Multi-segment strategy
How might a business respond to the green shift?
By using eco-friendly packaging, sustainable materials, or promoting environmentally responsible practices.
What is brand loyalty?
When a customer keeps returning to the same business or brand because they trust or like it.
A business targets people living in coastal Queensland who enjoy outdoor fitness and buy activewear regularly. Name two segmentation methods being used.
Geographic and psychographic
A gluten-free bakery aimed at customers with very specific dietary needs is using what type of marketing approach, and why?
Niche marketing, because it is targeting a small, specialised group with specific needs.
Give one reason why Qantas can charge more than Jetstar.
Because Qantas targets customers who value extra service, comfort, lounges, trust, or premium travel experience.