How do organisations divide the market into segments to offer the right products to the right people?
Target marketing and market segmentation: why organisations target marketing, and how the market is divided into segments by age, gender, social group, lifestyle and ethnicity to match products to customers.
A CCEA GCSE Leisure, Travel and Tourism guide to target marketing and market segmentation. Covers why organisations target their marketing, and how the market is divided into segments by age, gender, social group, lifestyle and ethnicity so the right products reach the right customers.
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What this dot point is asking
You need to understand target marketing (choosing particular groups of customers to aim at) and market segmentation (dividing the market into those groups). CCEA expects you to know the main bases for segmenting a market, age, gender, social group, lifestyle and ethnicity, and to explain why targeting is more effective than aiming at everyone. Examiners reward a precise definition of segmentation, correct bases with examples, and applied reasoning about why an organisation targets a chosen group.
Why organisations target marketing
No organisation can appeal equally to everyone, so it chooses who to aim at.
What market segmentation is
To target effectively, an organisation first segments the market.
How segmentation shapes products and promotion
Segmentation guides the whole marketing effort:
- Age - a theme park designs thrill rides for teenagers and gentle attractions for young families, and promotes each through different channels.
- Gender - a spa break may be promoted differently to women and men, though many products suit all.
- Social group - a luxury hotel targets higher-income customers; a budget hostel targets cost-conscious travellers.
- Lifestyle - an activity holiday targets active, adventurous customers; a quiet retreat targets those seeking relaxation.
- Ethnicity - destinations and providers may offer particular foods, language support or cultural events to suit different groups.
Worked example: choosing the target segment
A common exam task asks you to identify and justify a target segment.
Why this matters
Target marketing and segmentation underpin everything in Unit 2: promotion only works when it reaches the right segment, and destinations and products are designed for particular groups. Being able to define segmentation, list the bases (age, gender, social group, lifestyle, ethnicity), and explain why targeting beats a one-size-fits-all approach prepares you for both recall and applied questions. It links to marketing and promotion (the channels chosen depend on the segment) and to cultural awareness (ethnicity and culture shape needs). In the exam, always tie a chosen segment to how it changes the product and promotion.
Try this
Q1. Define market segmentation. [2 marks]
- Cue. Dividing the whole market into smaller groups of customers who share similar characteristics or needs.
Q2. Name three bases on which a market can be segmented. [3 marks]
- Cue. Any three: age, gender, social group, lifestyle, ethnicity.
Q3. Give one reason target marketing is more effective than aiming at everyone. [1 mark]
- Cue. The product and promotion can be matched to a chosen group, and money is not wasted reaching people who will never buy.
Exam-style practice questions
Practice questions written in the style of CCEA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
CCEA Unit 2 (style)4 marksWhat is meant by market segmentation? Give two ways a market can be segmented.Show worked answer →
A definition and recall question testing AO1.
Market segmentation means dividing the whole market into smaller groups (segments) of customers who share similar characteristics or needs, so that an organisation can aim the right products and promotion at each group.
Two ways a market can be segmented are by age (for example children, families, young adults or older people) and by lifestyle (for example active and adventurous customers, or those seeking relaxation). Other acceptable answers are gender, social group and ethnicity.
The marks are for an accurate definition of segmentation and two genuine bases for dividing the market.
CCEA Unit 2 (style)6 marksExplain why a leisure, travel and tourism organisation uses target marketing rather than aiming at everyone.Show worked answer →
An understanding question testing AO2, asking for the benefits of targeting.
Target marketing means choosing specific segments and aiming products and promotion at them. It is more effective than aiming at everyone because the product can be designed to suit the group's needs, the promotion can be placed where that group will see it, and money is not wasted reaching people who will never buy.
It also helps the organisation compete, because a product tailored to a clear group appeals more strongly than a one-size-fits-all offer.
A strong answer explains that targeting matches product and promotion to a chosen segment, reduces wasted spending, and gives a stronger appeal and competitive edge, ideally with an example such as a family resort targeting families.
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