Podcast
Questions and Answers
What is market segmentation?
What is market segmentation?
- The process of combining small markets into large heterogeneous markets
- The process of creating value for target customers
- The process of dividing large heterogeneous markets into small markets based on unique needs (correct)
- The process of targeting large homogeneous markets with products and services
Which of the following is NOT a method of segmenting consumer markets?
Which of the following is NOT a method of segmenting consumer markets?
- Behavioral segmentation
- Economic segmentation (correct)
- Geographic segmentation
- Demographic segmentation
What is the purpose of market targeting?
What is the purpose of market targeting?
- To create value for target customers
- To divide large homogeneous markets into small markets
- To reach large heterogeneous markets more efficiently and effectively (correct)
- To combine small markets into large heterogeneous markets
What is the objective of market differentiation?
What is the objective of market differentiation?
Why is it important to segment international markets?
Why is it important to segment international markets?
Which segmentation method categorizes consumers based on their lifestyles, values, and personality traits?
Which segmentation method categorizes consumers based on their lifestyles, values, and personality traits?
What is geographic segmentation in market segmentation?
What is geographic segmentation in market segmentation?
What is demographic segmentation based on?
What is demographic segmentation based on?
What is psychographic segmentation based on?
What is psychographic segmentation based on?
What does behavioral segmentation divide buyers into groups based on?
What does behavioral segmentation divide buyers into groups based on?
What is geodemographic segmentation an example of?
What is geodemographic segmentation an example of?
What does PRIZM NE classify every American household into?
What does PRIZM NE classify every American household into?
Study Notes
Market Segmentation
- Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs, characteristics, or behaviors.
Methods of Market Segmentation
- Geographic segmentation: divides consumers based on their geographical location, climate, or region.
- Demographic segmentation: based on demographic variables such as age, sex, income, occupation, education, and family size.
- Psychographic segmentation: based on consumers' lifestyles, values, and personality traits.
- Behavioral segmentation: divides buyers into groups based on their knowledge, attitude, use, or response to a product.
- Geodemographic segmentation: combines geographic and demographic characteristics to segment consumers.
Market Targeting
- The purpose of market targeting is to select the most profitable segments and develop marketing mixes tailored to each segment.
Market Differentiation
- The objective of market differentiation is to create a unique identity for a product or service, distinguishing it from competitors.
International Market Segmentation
- It is important to segment international markets because consumer needs, preferences, and behaviors can vary significantly across different countries and regions.
PRIZM NE
- PRIZM NE is a geodemographic segmentation tool that classifies every American household into one of 66 distinct lifestyle types, based on demographics, lifestyle, and behavior.
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Description
Test your knowledge on market segmentation, market targeting, differentiation, and positioning in the context of customer-driven marketing strategy. Explore key concepts from Chapter 7 of 'Customer-Driven Marketing Strategy: Creating Value for Target Customers'.
