Market Segmentation and Targeting
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Questions and Answers

What does a customer value proposition primarily focus on?

  • Market share increase through competition
  • Promotional strategies targeting a broad audience
  • The price reduction to attract customers
  • A unique combination of benefits satisfying buyers' needs (correct)

    • Which of the following best defines a target market?

  • Any individuals who could potentially buy a product
  • A specific group of existing and potential consumers for marketing efforts (correct)
  • A market defined solely by geographic location
  • A heterogeneous group of all potential consumers

    • Which segmentation variable focuses on shared lifestyles and values?

  • Behaviouristic Segmentation
  • Demographic Segmentation
  • Psychographic Segmentation (correct)
  • Geographic Segmentation

    • What does behaviouristic segmentation analyze?

    <p>The spending habits and usage of a product</p> Signup and view all the answers

    Which of the following segmentation variables considers age, income, and education level?

    <p>Demographic Segmentation</p> Signup and view all the answers

    What is the main purpose of market segmentation?

    <p>To group prospective buyers with common needs.</p> Signup and view all the answers

    Which of the following is NOT a benefit of market segmentation?

    <p>Simplifying the marketing process for all products.</p> Signup and view all the answers

    Which market segment is focused on goods and services for personal use?

    <p>Consumer Market</p> Signup and view all the answers

    What is a key characteristic of effective market segmentation?

    <p>It leads to product differentiation.</p> Signup and view all the answers

    What are the two main market segments identified in the content?

    <p>Consumer Market and Business Market</p> Signup and view all the answers

    Which form of market segmentation targets very specific customer needs?

    <p>Niche Segmentation</p> Signup and view all the answers

    What does product positioning involve?

    <p>Establishing a distinct image for a product in consumers' minds.</p> Signup and view all the answers

    What is essential for marketers to effectively segment a market?

    <p>Clear consumer insights into target markets.</p> Signup and view all the answers

    What do segmentation analytics enhance?

    <p>Insights into customer behavior and needs.</p> Signup and view all the answers

    Why is it important to balance satisfying individual wants and profitability in segmentation?

    <p>To ensure long-term customer relationships are beneficial.</p> Signup and view all the answers

    What is the main purpose of creating a persona in marketing?

    <p>To provide character descriptions of a brand's typical customer</p> Signup and view all the answers

    Which of the following steps is not part of the market segmentation process?

    <p>Create personas based on hypothetical data</p> Signup and view all the answers

    What does product positioning aim to achieve?

    <p>Establish the brand's impression in consumers' minds</p> Signup and view all the answers

    Which of the following companies provides granular data for market analysis?

    <p>Environics Analytics</p> Signup and view all the answers

    Which component is not included in a positioning statement?

    <p>Brand's historical sales data</p> Signup and view all the answers

    What is the outcome of clustering common consumer/customer variables?

    <p>Identification of meaningful market segments</p> Signup and view all the answers

    Which of the following is a characteristic of consumer analysis in market segmentation?

    <p>Balancing analytical skills with strategic thinking</p> Signup and view all the answers

    What role do research companies like Nielsen and Euromonitor play in market segmentation?

    <p>Offer general market data and trends</p> Signup and view all the answers

    Study Notes

    Market Segmentation

    • Marketers must understand the needs of their consumers and use resources effectively
    • Market segmentation involves grouping consumers into categories that share similar needs and purchasing behaviors
    • This leads to product differentiation
    • Two key segments - Consumer market for personal use and Business market for products used in business/other goods

    Forms of Market Segmentation

    • Mass marketing reaches everyone with a single product
    • Segment marketing targets specific groups with specialized products based on their needs
    • Niche marketing targets even smaller, more precisely defined groups with focused products
    • Individualized marketing caters specifically to individual needs with personalized products

    Customer Value Proposition

    • This is a unique combination of benefits offered to consumers to address their needs

    Target Market Profiles and Personas

    • Target market is the specific group of consumers who are the intended audience
    • Personas are detailed character descriptions of typical customers that bring data to life

    Segmentation Variables

    • Geographic: Where customers live and work
    • Demographic: Age, gender, income, education, ethnicity, occupation
    • Psychographic: Attitudes, values, lifestyles, hobbies, interests
    • Behaviouristic: How customers buy and use the product, their loyalty, spending frequency

    Segmentation Analytics

    • Data companies provide insights into market size, growth, and consumer trends
    • They can also provide detailed information on specific population clusters

    Steps in Market Segmentation

    • This process involves:
      • Identifying consumer needs and common characteristics
      • Grouping these characteristics into meaningful segments
      • Estimating the size and viability of each segment
      • Choosing target segments
      • Executing marketing programs to reach chosen segments
      • Monitoring and evaluating the effectiveness of these programs

    Positioning

    • Product Positioning is the image you want to create for your brand in the minds of consumers
    • Factors to consider:
      • Image: The perceived personality of the brand
      • Product Attribute: Key features and characteristics of the product
      • Price: The price point relative to competitors

    Positioning Statement

    • Positioning statements are concise and clear statements that define your brand

    • It should include:

      • Target Market and Need: Identify the specific group and their needs
      • Branded Product Name: The name of your product
      • Product Category: The category your product competes in
      • Unique Attributes and Benefits: The key advantages and benefits of your product

    • A sample positioning statement: "For (target market) who desire (target market need), (brand) is the (product category) that offers (product benefits)."

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    Related Documents

    Marketing The Core - Chapter 06 - PDF

    Description

    This quiz covers the fundamental concepts of market segmentation, including its importance in understanding consumer needs and effective resource allocation. Explore various forms of segmentation like mass, segment, niche, and individualized marketing. Additionally, learn about customer value propositions and target market profiles.

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