Podcast
Questions and Answers
What type of segmentation involves dividing a market based on variables such as education and age?
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?
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?
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?
Which of the following factors would NOT typically be considered when segmenting business markets?
Intermarket segmentation is primarily concerned with which of the following?
Intermarket segmentation is primarily concerned with which of the following?
What is the correct definition of a target market?
What is the correct definition of a target market?
Which variable is NOT commonly used in consumer market segmentation?
Which variable is NOT commonly used in consumer market segmentation?
Why is understanding cultural factors important in international market segmentation?
Why is understanding cultural factors important in international market segmentation?
Which characteristic is NOT a requirement for effective segmentation?
Which characteristic is NOT a requirement for effective segmentation?
What is a primary goal of differentiated marketing?
What is a primary goal of differentiated marketing?
Which of the following best describes micromarketing?
Which of the following best describes micromarketing?
What does positioning primarily refer to?
What does positioning primarily refer to?
Which of the following is a characteristic of concentrated marketing?
Which of the following is a characteristic of concentrated marketing?
When evaluating market segments, which factor is NOT considered?
When evaluating market segments, which factor is NOT considered?
Which of the following aspects is NOT part of a competitive advantage?
Which of the following aspects is NOT part of a competitive advantage?
Flashcards
Market Segmentation
Market Segmentation
Dividing a market into smaller groups with similar needs, characteristics, or behaviors. Each group might need a different marketing strategy.
Target Market
Target Market
A specific group of buyers that a company aims to serve with tailored marketing efforts.
Geographic Segmentation
Geographic Segmentation
Segmenting a market based on where people live, like countries, regions, or neighborhoods.
Demographic Segmentation
Demographic Segmentation
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Psychographic Segmentation
Psychographic Segmentation
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Behavioral Segmentation
Behavioral Segmentation
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Segmenting Business Markets
Segmenting Business Markets
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Intermarket Segmentation
Intermarket Segmentation
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Measurable Segment
Measurable Segment
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Differentiable Segment
Differentiable Segment
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Accessible Segment
Accessible Segment
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Substantial Segment
Substantial Segment
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Undifferentiated Marketing
Undifferentiated Marketing
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Differentiated Marketing
Differentiated Marketing
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Concentrated Marketing
Concentrated Marketing
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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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