1. Century is a small international vehicle manufacturing company, situated in Australia. Currently they produce four lines of vehicles: a low-priced vehicle that is fuel-efficient and affordable, a family vehicle with extra safety features, an SUV and most recently, a luxury sports model was added to the product range. Century is investigating entering into the South African market.

A) Discuss the three bases for segmentation that Century could use to segment their potential market and give ONE example of how EACH of these categories could be applied to Centurys vehicles. (9 Marks)

2. Daniel started selling carpets to students in Stellenbosch. He is struggling to find customers. Explain to Daniel why he needs to reconsider his segmentation by referring to the criteria of successful segmentation. (10 Marks)

3. Frank decided to use demographic segmentation for his new business, however heard that demographic segmentation is not always sufficient enough. You think he should consider psychographic segmentation. Explain to Frank what the different variables and dimensions are of psychographic segmentation.