Question

Gayle’s Soaps is a business which manufactures health and beauty products. Its market
share has remained constant at 15% despite new businesses entering this market. The
business uses market segmentation. Most of its customers are women. The Marketing
manager believes the company could increase its profits if it increases the price of each of its
most popular products.
(a) What is meant by ‘market segmentation’?
market segmentation is the practice of dividing your target market into approachable groups

(b) Identify two ways (other than gender) that Gayle’s Soaps could segment its market.
Way 1:
Way 2:
(c) Identify and explain two advantages of market segmentation for Gayle’s Soaps.
Advantage 1:
Explanation:
Advantage 2:
Explanation:

Answer 1

Answer:

Gayle’s Soaps is a business which manufactures health and beauty products. Its market share has remained constant at 15% despite new businesses entering this market. The business uses market segmentation. Most of its customers are women. The Marketing manager believes the company could increase its profits if it increases the