Page 94 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx
P. 94
Chapter 8
6.3 Price differentiation
If the market can be split into different segments, each quite separate from the others
and with its own individual demand function, it is possible to sell the same product to
different customers at different prices.
Marketing techniques can be employed to create market segmentation, if natural
demarcation lines are not already in existence. Segmentation will usually be on the
basis of one or more of the following:
Time
Quantity
Type of customer
Outlet/function
Geographical location
Product content
88
