Marketing Segmentation Quiz

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?