QUESTION 3 (10 Marks) The Purpose Of Segmenting The Market Is To Ensure That A Company’s Limited Resources Are Directed At

QUESTION 3 (10 Marks) The purpose of segmenting the market is to ensure that a company’s limited resources are directed at those groups of people or organisations likely to yield the best returns. Segmentation operates at four levels. 3.1 Identify and discuss the FOUR (4) levels at which segmentation operates. 3.2 Identify the level applicable to Snack. Refer to information in the case study to substantiate your answer.

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3.1 Four Levels of Market Segmentation:

1. Mass Marketing: This level involves treating the entire market as a single, homogenous group and offering the same product or service to everyone. It doesn’t consider differences in customer needs or preferences.

2. Segment Marketing: At this level, the market is divided into segments based on shared characteristics like demographics, geography, or psychographics. Companies create marketing strategies tailored to each segment’s specific needs and wants.

3. Niche Marketing: Niche marketing goes a step further by targeting a very specific and well-defined segment of the market. This segment typically has unique needs that can be addressed with specialized products or services.

4. Micromarketing: Micromarketing is the most granular level, where companies target individual customers or very small segments with highly personalized offerings. This often involves one-on-one marketing efforts.

3.2 Applicability of Market Segmentation to Snack:

product with mass appeal (e.g., potato chips), it might operate at the mass marketing level, targeting a broad audience with similar tastes.

– If Snack has variations designed for specific consumer groups, such as healthy snacks for fitness enthusiasts and indulgent snacks for occasional treat seekers, it would operate at the segment marketing level.


If Snack is highly specialized, like gourmet snacks for a niche market or personalized snack subscription boxes, it would fall under niche or micromarketing, depending on how narrowly it’s targeted.

In conclusion, effective market segmentation ensures efficient allocation of resources by tailoring marketing efforts to distinct customer groups. The specific level of segmentation for Snack depends on its unique product offerings and target audience, as detailed in the case study.