IB Business Management SL — Introduction to Marketing: Notes, Questions & Solutions
Before the 7Ps make sense, you need to know how segmentation and target markets actually work — the notes, examples and practice questions to get there.
IB Business Management SL — Introduction to Marketing: Notes, Questions & Solutions
Marketing is the management process of identifying, anticipating and satisfying customer requirements profitably; it starts with market research and segmentation before any product, price or promotion decision is made.
Key points
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Marketing is customer-led: research comes before the marketing mix, not after.
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Segmentation splits a market by demographic, geographic, psychographic or behavioural criteria so a business can target a specific group.
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A niche market is a small, specific segment; a mass market targets the broadest possible audience.
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See the seven Ps of the marketing mix for how these decisions turn into an actual strategy.
Practice questions
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Define “market segmentation”. (Dividing a market into groups of consumers with similar needs or characteristics.)
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Give two examples of demographic segmentation variables. (Age and income, or gender and family size.)
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Explain one advantage of targeting a niche market rather than a mass market. (Less competition and the ability to charge a premium price for a specialised product.)
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A business sells running shoes to serious marathon runners. What type of market is this? (A niche market.)
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Why must market research happen before the marketing mix is designed? (The mix — product, price, place, promotion — must match what research shows the target customer actually wants.)
Written by sortmyprep | Reviewed by IB Teacher | Last updated: September 15, 2026