2.3 Market segmentation GapFill

Businesses segment the market so they can better target the customers they want. This means  shiftingaddingmovingsplitting the potential customers into easily identified groups. This is important because it allows the business to spend money on  investigatingstafftemporary staffadvertising using the method that will most appeal to those customers. Decisions on which social media platforms to use are most likely to be based on the  locationgenderincomeage of the target market, while sending out advertising material for a new grocery store will use  educational standardsinterestsgenderlocation of the store and customers as the key segment.

Some businesses may promote their products in different ways to different customers. The market for cars is large, but the market for electric vehicles will comprise customers with high  advertisinglocationincomesaspirations. Car manufacturers produce a range of vehicles for different customer groups so will target those groups with different types of advertising and promotion. 

Smaller businesses such as cafes and hair salons will focus on the  locationsizeadvertisingmarketing of their customers as they rely on having a good local customer base. Their businesses are not suitable for  smallerbroaderonlinelarger sales so they rely on passing trade and repeat appointments. They may also advertise on social media but use platforms that host  banksmultinationalsinfluencerslocal information pages that their clients view regularly.