Podcast
Questions and Answers
Segmentation involves dividing the total market into smaller _______________.
Segmentation involves dividing the total market into smaller _______________.
segments
Market _______________ - Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
Market _______________ - Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
segmentation
The process of offering different products or using different marketing approaches for different age and life-cycle groups is known as _______________ segmentation.
The process of offering different products or using different marketing approaches for different age and life-cycle groups is known as _______________ segmentation.
Age and life-cycle stage
The type of segmentation that divides the market based on variables such as social class, lifestyle, or personality traits is known as _______________ segmentation.
The type of segmentation that divides the market based on variables such as social class, lifestyle, or personality traits is known as _______________ segmentation.
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The type of segmentation that divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product is known as _______________ segmentation.
The type of segmentation that divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product is known as _______________ segmentation.
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Multiple segmentation is used to identify smaller, better-defined _______________ groups.
Multiple segmentation is used to identify smaller, better-defined _______________ groups.
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Inter-market segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different _______________.
Inter-market segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different _______________.
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Market segmentation involves four key areas, including segmenting _______________ markets, segmenting business markets, segmenting international markets, and requirements for effective segmentation.
Market segmentation involves four key areas, including segmenting _______________ markets, segmenting business markets, segmenting international markets, and requirements for effective segmentation.
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Market segmentation requires ______ characteristics that the company decides to serve.
Market segmentation requires ______ characteristics that the company decides to serve.
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A ______ target market consists of a set of buyers who share common needs or characteristics.
A ______ target market consists of a set of buyers who share common needs or characteristics.
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Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific ______ and locations.
Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific ______ and locations.
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Differentiated marketing targets several different ______ segments and designs separate offers for each.
Differentiated marketing targets several different ______ segments and designs separate offers for each.
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Product position is the way the product is defined by consumers on important ______ attributes.
Product position is the way the product is defined by consumers on important ______ attributes.
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Competitive advantage is an advantage over competitors gained by offering consumers greater ______, either through lower prices or by providing more benefits.
Competitive advantage is an advantage over competitors gained by offering consumers greater ______, either through lower prices or by providing more benefits.
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The goal of differentiated marketing is to achieve higher ______ and stronger position.
The goal of differentiated marketing is to achieve higher ______ and stronger position.
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One-to-one marketing is also known as ______ marketing.
One-to-one marketing is also known as ______ marketing.
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Study Notes
Market Segmentation
- Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
- Four major areas for market segmentation:
- Segmenting consumer markets
- Segmenting business markets
- Segmenting international markets
- Requirements for effective segmentation
Types of Segmenting Consumer Markets
- Four types:
- Geographic segmentation (divides market into different geographical units)
- Demographic segmentation (divides market into groups based on variables such as age, gender, family size, etc.)
- Psychographic segmentation (divides buyers into different groups based on social class, lifestyle, or personality traits)
- Behavioral segmentation (divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product)
Behavioral Segmentation
- Five types:
- Occasions
- Benefits sought
- User status
- Usage rate
- Loyalty status
Multiple Segmentation
- Used to identify smaller, better-defined target groups
- Inter-market segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different countries
Requirements for Effective Segmentation
- Five requirements:
- Measurable
- Accessible
- Substantial
- Differentiable
- Actionable
Target Market
- Consists of a set of buyers who share common needs or characteristics that the company decides to serve
Evaluating Market Segments
- Three classifications:
- Segment size and growth
- Segment structural attractiveness
- Company objectives and resources
Target Marketing Strategies
- Two types:
- Undifferentiated marketing (targets the whole market with one offer)
- Differentiated marketing (targets several different market segments and designs separate offers for each)
Micromarketing
- The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
- Two types:
- Local marketing (involves tailoring brands and promotion to the needs and wants of local customer groups)
- Individual marketing (involves tailoring products and marketing programs to the needs and preferences of individual customers)
Product Position
- The way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products
Choosing a Differentiation and Positioning Strategy
- Four steps:
- Identifying a set of possible competitive advantages to build a position
- Choosing the right competitive advantages
- Selecting an overall positioning strategy
- Communicating and delivering the chosen position to the market
Competitive Advantage
- An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices
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Description
Learn about dividing markets into smaller segments with distinct needs and characteristics, and the four types of segmenting consumer markets. Test your knowledge on geographic, demographic, psychographic, and behavioral segmentation.
