Marketing Segmentation and Strategy

Questions and Answers

What is a market composed of?

A single consumer's wants and needs

Many segments of consumers with similar characteristics (correct)

A specific geographic location

Several products or services

What is the primary purpose of adding features to a basic product?

To change the packaging design

To reduce the production cost

To make it different from and better than competitors' products and services (correct)

To increase the warranty period

What is the primary goal of segmenting a market?

To increase the price of a product

To group consumers with similar characteristics (correct)

To create a unique product for each segment

To identify the most profitable customers

What is a major factor in behavioral segmentation?

Previous experience with products Signup and view all the answers

What does a brand typically consist of?

A unique name, symbol, or design Signup and view all the answers

What is essential to understand when selecting a target market?

The wants and needs of the target market and their buying behavior Signup and view all the answers

What is the primary benefit of a maintenance contract?

It covers repair work costs Signup and view all the answers

What type of products are often considered impulse goods?

Candy, toys, and low-cost items Signup and view all the answers

What is the most critical part of the product mix?

The basic product offered Signup and view all the answers

What is the primary purpose of packaging?

To provide protection and security, and offer information Signup and view all the answers

Study Notes

Marketing Strategy

A marketing strategy outlines how to plan and coordinate marketing activities to achieve organizational goals.

Market and Market Segments

A market consists of all consumers available for a business to serve by selling products or services.
Markets are composed of many segments, each containing people with one or more similar characteristics.

Factors Used to Segment a Market

Necessities, convenience items, and luxuries
Age, gender, education, occupation, income, and geographic location
Interests, hobbies, values, beliefs, religion, attributes, leisure activities, and preferences and habits
Lifestyle and buy behavior pattern

Behavioral Segmentation

Factors include previous experience with products, sources of information used, and loyalty.

Selecting Target Markets

The target market consists of people with common important needs.
People outside the target market should have significant differences from those in the target market.
The company needs adequate information about the target market.
It is essential to understand the important wants and needs of the target market and their buying behavior.

Product and Mix Elements

The basic product is the most important part of the product mix element.
Product features can be added to a basic product to differentiate it from competitors.
Associated services, such as maintenance contracts, can be offered.

Brands and Image

A brand is a unique name, symbol, or design that identifies a product or service.
Brand names can be a crucial factor in purchasing decisions.

Guarantee and Warranty

A guarantee or warranty provides assurance of a product's quality and value.
If a product does not meet standards, customers can get a refund.

Packaging

Packaging provides protection and security for products during transportation and storage.
It also provides information about the product.
Packaging is particularly important for impulse goods, candy, toys, and low-cost items, as well as for emergency goods such as towing services and umbrellas.