Market segmentation
Market segmentation groups customers with meaningfully different needs, behaviour or willingness to pay so an organisation can tailor products, service and communication. A useful segment must be identifiable and commercially actionable. Segmentation can inform focus strategies and pricing but does not justify unlawful or unethical treatment. Evaluate demand, cost to serve and overlap rather than assume demographic labels alone explain purchasing behaviour.
Worked example
A service identifies customers needing urgent specialist support separately from those willing to wait for a lower-cost standard response.
Common mistake
A group is not automatically a useful segment if its members do not share relevant needs or cannot be served differently in practice.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | PM | Supporting | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |