Gayle's Soaps is a business which manufactures health and beauty products. Its market share has remained constant at 15% despite new businesses entering this market. The business uses market segmentation. Most of its customers are women. The Marketing manager believes the company could increase its profits if it increases the price of each of its most popular products.

1. (a)What is meant by 'market share'?[2]
2. (b)Identify two ways (other than gender) that Gayle's Soaps could segment its market.[2]
3. (c)Identify and explain two advantages of market segmentation for Gayle's Soaps.[4]
4. (d)Identify and explain three problems that a business might have when trying to enter a new market.[6]
5. (e)Do you think that if Gayle's Soaps decides to increase prices then this will lead to higher profits? Justify your answer.[6]