06:Identify and explain two reasons why segmenting the market might help BBB?[6]

[Dania]

Kate is an entrepreneur. Two years ago she left her job as a fashion designer at a multinational company.
She started up BBB, a women’s sportswear clothing business. BBB targets a market segment of high income
consumers. BBB’s products are sold in 3 retail shops and also through its website. Kate said: ‘I saw a gap in
the market and took the risk. Obtaining the finance I needed from the bank was not easy. I enjoy making
decisions such as using leaflets to promote the clothes.’ BBB’s revenue target for next year is $500 000.

06:Identify and explain two reasons why segmenting the market might help BBB?[6]

Possible KN Points:
>Able to tailor goods to specific needs OR know what to produce.
>To help decide best place to sell.
>Research is simpler/help identify customer needs.
>Help target advertising.
>Help set prices.
>Identify gaps in the market.