Unit 3 Segmentation, targeting and positioning

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Questions and Answers

What type of segmentation involves dividing a market based on variables such as education and age?

Demographic segmentation (correct)

Geographic segmentation

Behavioral segmentation

Psychographic segmentation

Which of the following is NOT a characteristic used in psychographic segmentation?

Income (correct)

Social class

Lifestyle

Personality

In market segmentation, what is the primary focus of geographic segmentation?

Understanding consumer behavior and attitudes

Analyzing income levels across demographics

Dividing the market based on geographical units (correct)

Identifying consumer lifestyle choices

Which of the following factors would NOT typically be considered when segmenting business markets?

Cultural factors Signup and view all the answers

Intermarket segmentation is primarily concerned with which of the following?

Creating consumer segments with similar needs across countries Signup and view all the answers

What is the correct definition of a target market?

A set of buyers identified for a specific marketing strategy Signup and view all the answers

Which variable is NOT commonly used in consumer market segmentation?

Customer operating characteristics Signup and view all the answers

Why is understanding cultural factors important in international market segmentation?

It influences consumer preferences and purchasing behaviors. Signup and view all the answers

Which characteristic is NOT a requirement for effective segmentation?

Affordable Signup and view all the answers

What is a primary goal of differentiated marketing?

To achieve higher sales and a stronger position Signup and view all the answers

Which of the following best describes micromarketing?

Tailoring products and marketing to specific individuals or locations Signup and view all the answers

What does positioning primarily refer to?

The place that the brand occupies in the consumer's mind Signup and view all the answers

Which of the following is a characteristic of concentrated marketing?

Focuses on a large share of a smaller market Signup and view all the answers

When evaluating market segments, which factor is NOT considered?

Company brand recognition Signup and view all the answers

Which of the following aspects is NOT part of a competitive advantage?

Standardized Signup and view all the answers

Study Notes

Market Segmentation

Definition: Dividing a market into smaller segments with distinct needs, characteristics, or behaviors requiring separate marketing strategies.
Target Market: A group of buyers who share common needs and characteristics that a company decides to serve.
Consumer Market Segmentation:
- Geographic: Dividing by geographic units (nations, regions, states, cities).
- Demographic: Dividing by age, life cycle, gender, income, occupation, education, religion, ethnicity, generation.
- Psychographic: Dividing by social class, lifestyle, personality characteristics.
- Behavioral: Dividing by consumer knowledge, attitudes, use of a product, or responses to a product.
Business Market Segmentation: Uses variables similar to consumer markets, plus:
- Customer operating characteristics
- Purchasing approaches
- Situational factors
- Personal characteristics
International Market Segmentation:
- Geographic location (e.g., Western Europe, Latin America).
- Economic factors (income, economic development).
- Political and legal factors (government stability).
- Cultural factors (language, religion).
- Intermarket segmentation: forming segments of consumers with similar needs and buying behaviors across different countries.

Market Targeting

Requirements for Effective Segmentation:
- Measurable
- Accessible
- Substantial
- Differentiable
- Actionable
Market Targeting Strategies:
- Undifferentiated (mass) marketing: Targets the whole market with one offer.
- Differentiated marketing: Targets several segments and offers a separate offer for each.
- Concentrated marketing: Targets a large share of only a smaller market (niche marketing).
- Micromarketing: Tailoring products and marketing to specific individuals or locations (local or individual marketing).

Differentiation and Positioning

Differentiation: Creating value for the company's offer by differentiating the market offerings.
Positioning: Placing a brand in the consumer's mind by developing a value proposition.
Competitive Advantage Requirements:
- Important
- Distinctive
- Superior
- Communicable
- Pre-emptive
- Affordable
- Profitable

Evaluating Market Segments

Factors Considered:
- Segment size and growth
- Segment structural attractiveness
- Company objectives and resources

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Description

This quiz explores the key concepts of market segmentation, including definitions, target markets, and various methods of segmenting both consumer and business markets. It highlights geographic, demographic, psychographic, and behavioral factors, as well as international market considerations. Test your knowledge and understanding of how segmentation can enhance marketing strategies.