Podcast
Questions and Answers
Which of the following is NOT a benefit of market segmentation?
Which of the following is NOT a benefit of market segmentation?
What is the primary purpose of segment evaluation in the target market identification process?
What is the primary purpose of segment evaluation in the target market identification process?
Which type of segmentation is based on characteristics such as occupation, income, and education?
Which type of segmentation is based on characteristics such as occupation, income, and education?
What is a key characteristic of a well-defined target market?
What is a key characteristic of a well-defined target market?
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Which of the following is an example of behavioral segmentation?
Which of the following is an example of behavioral segmentation?
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What is the purpose of the target market identification process?
What is the purpose of the target market identification process?
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Which type of segmentation is used in B2B marketing?
Which type of segmentation is used in B2B marketing?
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What is a key consideration when evaluating the attractiveness of a market segment?
What is a key consideration when evaluating the attractiveness of a market segment?
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Which of the following is NOT a characteristic of a well-defined target market?
Which of the following is NOT a characteristic of a well-defined target market?
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What is the first step in the target market identification process?
What is the first step in the target market identification process?
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Study Notes
STP: Market Segmentation
- Definition: Dividing a larger market into smaller, distinct groups of consumers with similar needs, characteristics, or behaviors.
-
Benefits:
- Helps businesses understand their target audience better
- Enables creation of tailored marketing strategies
- Increases efficiency in resource allocation
-
Segmentation Bases:
-
Demographic Segmentation:
- Age
- Gender
- Income
- Occupation
- Education
-
Geographic Segmentation:
- Region
- City
- Rural/Urban
-
Psychographic Segmentation:
- Lifestyle
- Personality
- Values
-
Behavioral Segmentation:
- Usage rate
- Loyalty
- Benefits sought
-
Firmographic Segmentation (B2B):
- Company size
- Industry
- Location
-
Demographic Segmentation:
STP: Target Market Identification
- Definition: Selecting a specific segment of the market to focus on, based on criteria such as size, growth potential, and competitiveness.
-
Target Market Identification Process:
- Segmentation: Divide the market into distinct segments
- Segment Evaluation: Assess each segment's attractiveness based on factors such as size, growth rate, and profitability
- Segment Selection: Choose the most attractive segment(s) to target
-
Target Market Characteristics:
- Size: Large enough to be profitable, but small enough to be manageable
- Growth Potential: High growth rate or potential for future growth
- Competitiveness: Low competition or opportunity to differentiate
- Accessibility: Easy to reach and communicate with the target market
- Actionability: Ability to develop marketing strategies that appeal to the target market
STP: Market Segmentation
- Market segmentation is the process of dividing a larger market into smaller, distinct groups of consumers with similar needs, characteristics, or behaviors.
- Benefits of market segmentation include:
- Better understanding of the target audience
- Creation of tailored marketing strategies
- Increased efficiency in resource allocation
- There are five bases for market segmentation:
Demographic Segmentation
- Age
- Gender
- Income
- Occupation
- Education
Geographic Segmentation
- Region
- City
- Rural/Urban
Psychographic Segmentation
- Lifestyle
- Personality
- Values
Behavioral Segmentation
- Usage rate
- Loyalty
- Benefits sought
Firmographic Segmentation (B2B)
- Company size
- Industry
- Location
STP: Target Market Identification
- Target market identification is the process of selecting a specific segment of the market to focus on, based on criteria such as size, growth potential, and competitiveness.
- The target market identification process involves:
Segment Evaluation
- Assessing each segment's attractiveness based on factors such as size, growth rate, and profitability
Segment Selection
- Choosing the most attractive segment(s) to target
- Characteristics of a target market include:
Ideal Target Market
- Size: large enough to be profitable, but small enough to be manageable
- Growth potential: high growth rate or potential for future growth
- Competitiveness: low competition or opportunity to differentiate
- Accessibility: easy to reach and communicate with the target market
- Actionability: ability to develop marketing strategies that appeal to the target market
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Description
Divide a larger market into smaller, distinct groups of consumers with similar needs, characteristics, or behaviors. Learn about the benefits and bases of market segmentation.
