Podcast
Questions and Answers
What are the different bases of market segmentation?
What are the different bases of market segmentation?
Geographic, demographic, psychographic, and behavioral
Define geodemographic segmentation and provide an example.
Define geodemographic segmentation and provide an example.
Geodemographic segmentation divides groups into consumer lifestyle patterns. An example is PRIZM NE, which classifies every American household into 66 unique segments organized into 14 different social groups.
What does income segmentation involve?
What does income segmentation involve?
Income segmentation divides the market into affluent or low-income consumers.
How does behavioral segmentation divide buyers?
How does behavioral segmentation divide buyers?
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What factors are considered in segmenting international markets?
What factors are considered in segmenting international markets?
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What is market segmentation?
What is market segmentation?
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What are the four segments of market segmentation?
What are the four segments of market segmentation?
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What are the three types of markets that can be segmented?
What are the three types of markets that can be segmented?
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What is the purpose of market segmentation?
What is the purpose of market segmentation?
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What are the requirements for effective segmentation?
What are the requirements for effective segmentation?
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Study Notes
Market Segmentation Overview
- Market segmentation involves dividing a broad target market into subsets of consumers with common needs or characteristics.
- Purpose is to tailor marketing strategies to specific groups, increasing effectiveness and efficiency.
Bases of Market Segmentation
- Demographic Segmentation: Based on age, gender, income, education, occupation, etc.
- Geographic Segmentation: Considers location, climate, and regional characteristics.
- Psychographic Segmentation: Involves lifestyle, values, personality traits, and social class.
- Behavioral Segmentation: Focuses on consumer behaviors, including buying patterns, brand loyalty, and usage rates.
Geodemographic Segmentation
- Combines geographic and demographic factors to identify consumers based on shared characteristics in specific locales.
- Example: Targeting affluent families in suburban areas for luxury home goods.
Income Segmentation
- Involves classifying consumers based on their income levels to target products and services that fit their purchasing power.
- Commonly used to differentiate between luxury, mid-range, and budget market offerings.
Behavioral Segmentation
- Divides buyers based on their purchasing behavior, including frequency of purchase, benefits sought, and brand loyalty.
- Helps companies tailor offerings to match specific consumer habits and preferences.
Factors in Segmenting International Markets
- Cultural differences, economic conditions, language, legal environments, and market dynamics are considered.
- Effective segmentation accommodates varying consumer behaviors and preferences across different countries.
Requirements for Effective Segmentation
- Segments must be measurable, accessible, substantial, actionable, and differentiable.
- Each segment should be large enough to justify marketing costs and have distinct responses to marketing strategies.
Types of Markets That Can Be Segmented
- Consumer Markets: Focus on individual or household buyers.
- Business Markets: Target organizations purchasing for operational use.
- International Markets: Involve segmentation based on geographic region or cultural differences across countries.
Four Segments of Market Segmentation
- Demographic: Age, income, education.
- Geographic: Region, city size, climate.
- Psychographic: Lifestyle, personality traits, values.
- Behavioral: Purchasing behavior, occasions, brand loyalty.
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Description
Test your knowledge on market segmentation, targeting, differentiation, and positioning as outlined in Chapter 7 of 'Customer-Driven Marketing Strategy: Creating Value for Target Customers'.
