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Questions and Answers
Market segmentation involves dividing a market into groups of buyers with similar needs and behaviors.
Market segmentation involves dividing a market into groups of buyers with similar needs and behaviors.
False
One of the characteristics of market segmentation is that the segments must be measurable.
One of the characteristics of market segmentation is that the segments must be measurable.
True
A target market consists of buyers who share distinct needs that a company decides to serve.
A target market consists of buyers who share distinct needs that a company decides to serve.
True
Market targeting can only be executed at a single level.
Market targeting can only be executed at a single level.
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The actionability characteristic of market segmentation refers to the ability to effectively implement marketing programmes.
The actionability characteristic of market segmentation refers to the ability to effectively implement marketing programmes.
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Price-oriented customers focus on individual needs and preferences.
Price-oriented customers focus on individual needs and preferences.
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Mass marketing aims to reach the largest potential market using the same product for everyone.
Mass marketing aims to reach the largest potential market using the same product for everyone.
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Niche marketing targets a broadly defined consumer group.
Niche marketing targets a broadly defined consumer group.
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Individual marketing is also known as mass marketing.
Individual marketing is also known as mass marketing.
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Local marketing caters specifically to consumer groups in cities and neighborhoods.
Local marketing caters specifically to consumer groups in cities and neighborhoods.
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Mass marketing involves focusing solely on local consumer groups.
Mass marketing involves focusing solely on local consumer groups.
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Differentiated marketing targets several market segments with separate offers for each segment.
Differentiated marketing targets several market segments with separate offers for each segment.
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Individual marketing is also known as niche marketing.
Individual marketing is also known as niche marketing.
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In B2B markets, decision-making units are usually simpler compared to consumer markets.
In B2B markets, decision-making units are usually simpler compared to consumer markets.
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The primary goal of local marketing is to engage in mass production and distribution.
The primary goal of local marketing is to engage in mass production and distribution.
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Buyers in the B2B market often have a long-term relationship with their suppliers.
Buyers in the B2B market often have a long-term relationship with their suppliers.
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Situational factors in B2B segmentation include urgency and order size.
Situational factors in B2B segmentation include urgency and order size.
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Kotler and Keller suggest that personal characteristics are irrelevant in segmenting B2B markets.
Kotler and Keller suggest that personal characteristics are irrelevant in segmenting B2B markets.
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Study Notes
Market Segmentation
- Market segmentation divides a market into distinct groups with different needs, characteristics, or behaviors, requiring separate marketing strategies.
STP Model (Segmentation, Targeting, Positioning)
- A framework for market segmentation. More detail on this model is not provided in the text.
Characteristics of Effective Market Segmentation
- Measurable: Segment size, purchasing power, and profiles are quantifiable.
- Accessible: Segments can be reached and served effectively.
- Substantial: Segments are large or profitable enough to warrant targeting.
- Differentiable: Segments respond differently to marketing mixes.
- Actionable: Effective marketing programs can be developed for each segment.
Consumer Market Segmentation Variables
- The text does not specify the variables used for consumer market segmentation.
Target Market Selection Strategies
- Mass Marketing: Offers the same product to everyone; aims for the largest potential market.
- Differentiated Marketing: Targets several segments with separate offers for each.
- Individual/One-to-One Marketing: Focuses on individual needs and offers customized products.
- Local Marketing: Targets specific geographic areas (cities, neighborhoods).
- Niche Marketing: Targets a narrowly defined group with specific needs.
Segmenting Business Markets (B2B)
- B2B markets differ from consumer markets: more complex decision-making, more rational buyers, more complex products, smaller target audiences, importance of personal relationships, longer-term buying relationships, less innovation driven by market forces and fewer behavioral/needs-based segments.
Segmenting Business Markets: Key Questions
- Demographic: Industry, company size, location.
- Operating Variables: Technology used, user/non-user status, customer capabilities.
- Purchasing Approaches: Purchasing organization, power structure, existing relationships, purchase policies, criteria.
- Situational Factors: Urgency, application, order size.
- Personal Characteristics: Buyer-seller similarity, risk attitudes, loyalty.
Segmenting Business Markets: Buyer Categorization
- Sequential Segmentation: Categorizes buyers as first-time prospects, novices, and sophisticates.
Segmenting Business Markets: Selling Approaches
- Price-oriented: Focuses on price competitiveness.
- Solution-oriented: Focuses on providing tailored solutions.
- Strategic-value: Focuses on building long-term, high-value partnerships.
STP - GDPB
- The meaning and context of "STP - GDPB" are not explained in the provided text.
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Description
This quiz covers key concepts in market segmentation, including the STP model and characteristics of effective segments. It explores the strategies for selecting target markets, helping you understand how businesses tailor their marketing efforts. Test your knowledge on how to divide a market based on distinct consumer needs and characteristics.
