Marketing Segmentation Quiz

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Questions and Answers

Which of the following is NOT a factor typically considered under the category of 'Psychographic' in market segmentation?

Income (correct)

Attitudes

Lifestyle

Personality

Which of the following is a question you should consider when determining whether a target segment is profitable enough to support your business?

What is the best way to get your product to your target customers?

What are the best ways to get your target segment's attention?

Are the segments large and profitable enough to support your business? (correct)

Whose needs can you best satisfy?

In the context of marketing mix, 'Place' refers to:

The communication strategies used to promote the product to the target segment

The distribution channels used to make the product available to customers (correct)

The pricing strategies used to make the product appealing to the target segment

The design and features of the product that cater to the target segment's needs

Which of the following is NOT a common category used for market segmentation?

Geographic (D) Signup and view all the answers

Which of the following scenarios BEST exemplifies 'Decision maker' in the context of market segmentation?

A parent who buys groceries for their family based on price and convenience (C) Signup and view all the answers

What is the first step in the strategic planning process?

Defining the company mission (C) Signup and view all the answers

Which of the following best describes targeting in marketing?

Selecting segments that are most likely to become customers (A) Signup and view all the answers

Which criterion is NOT part of the five criteria for a market?

The geographical location of the buyer (A) Signup and view all the answers

What is the primary purpose of marketing research?

To systematically design and collect data relevant to a marketing situation (D) Signup and view all the answers

What should a target market primarily include?

Only profitable segments likely to be receptive to the products (D) Signup and view all the answers

Which segmentation approach uses geographical locations such as zip codes?

Geographic segmentation (B) Signup and view all the answers

What is a key component of segmentation in marketing?

Understanding potential customer groups better (A) Signup and view all the answers

Which of the following statements is true regarding strategic planning?

It involves aligning company goals with market opportunities. (B) Signup and view all the answers

Study Notes

Strategic Planning

Strategic planning is a process that involves developing and maintaining a strategic fit between an organization's goals and its changing marketing opportunities, along with the organization's capabilities.

Steps in Strategic Planning

Defining the company mission: This is the first step, outlining the company's purpose and goals.
Setting company objectives and goals: This step involves defining specific, measurable, achievable, relevant, and time-bound (SMART) objectives for the company.
Designing the business portfolio: This step involves analyzing the current business portfolio and deciding which businesses to invest in, maintain, or divest.
Planning marketing and other functional strategies: This step combines marketing strategies with other functional strategies within the organization.

Marketing Research

Marketing research involves the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
This process can determine the viability of a new product or service through research directly with potential customers.
This research also helps a company uncover its target market and gain customer feedback about their interest in the product or service.

Segmentation and Targeting

Segmentation: This is the process of dividing potential customers into groups to better understand them.
Targeting: This involves determining which segments are most likely to become customers and directing marketing efforts to best satisfy them.

Five Criteria for a Market

A true need or want for the product, service, or idea (may be recognized, unrecognized, or latent).
The ability of the person/organization to pay for the product via acceptable means.
Willingness to buy the product.
Appropriate authority to purchase the product.
A large enough number of relevant people/organizations meeting the above criteria for profitability.

Choosing a Target Market

The target market should include only the segments of a market that are profitable to serve and are receptive to the company's products.

Sample Market Segmentation: Family Life Stage

A sample market segmentation based on family life stage includes Young Singles, Young Couples (no kids), Young Families, Families with Older Kids, and Empty Nesters.
This segmentation shows how each segment has distinct spending habits and preferences.

Common Market Segmentation Approaches

Geographic: Segmentation based on location (nations, states, cities, etc.).
Demographic: Segmentation based on measurable characteristics (age, gender, income, education, etc.).
Psychographic: Segmentation based on lifestyle, personality, attitudes, and social class.
Behavioral: Segmentation based on user status, purchase occasion, loyalty, readiness to buy.
Decision-maker: Segmentation based on the decision-making role (purchaser, influencer, etc.).

Sample Market Segment Profiles

Sample profiles illustrate specific characteristics of different family life stage segments, including average spending habits and frequently preferred activities.

Questions to Consider in Selecting a Target Segment

Needs: Whose needs can be best satisfied?
Profitability: Who will be the most profitable customers?
Effectiveness: Can you effectively reach and serve each target segment?
Support: Are the segments large and profitable enough to support the business?
Resources: Do you have the necessary resources to effectively reach and serve each segment?

Shaping Marketing Mix for Target Markets

Product: What makes the ideal product for the target segment? What unique problems does the product solve?
Promotion: How can the segment's attention be captured? What message should be conveyed?
Place/Distribution: Where does the segment look for products? How can products be efficiently distributed to meet customer needs?
Price: What is an appropriate price range for the target segment?

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Description

Test your knowledge about marketing segmentation and the marketing mix with this engaging quiz. You'll explore key concepts like psychographic factors, profitability of target segments, and the 'Place' element in marketing. Perfect for students and professionals looking to refresh their marketing concepts.