10 Questions
What are the benefits of segmenting a market by country of origin?
Allows for customization by language, imagery, and platforms
In market segmentation by age, what customization benefits does it offer?
Tailoring marketing message, design, and channels
Which characteristic is important for a market segment to be identifiable?
Individuals can be found and categorized for easy targeting
What does market segmentation by gender involve?
Tailoring strategies for male or female customers
How does market segmentation by life stage differ from age-based segmentation?
Groups individuals based on their stage in life rather than age
Which segmentation type focuses on the 'why' behind people's travel motives?
'Travel motive' segmentation
How does segmenting by travel motive help marketers in the travel industry?
'Travel motive' customization aligns with the reasons for travel
'Cohesive' characteristic in market segments refers to:
'Cohesive' values common among all consumers in a segment
'Identifiable' characteristic in market segments means:
'Identifiable' individuals can be easily located and categorized
'Age' segmentation primarily focuses on:
'Age'-based customization for marketing message, design, and channels
Study Notes
Types of Market Segmentation
- Psychographic segmentation deals with intellectual and emotional characteristics to learn customer motivations, desires, and needs.
Benefits of Market Segmentation
- Improves campaign performance by reaching the right audience at the right time with the right message.
- Informs product development to create goods that meet customer needs.
- Reveals areas to expand into new markets.
- Improves business focus by building a brand identity and specializing in a particular category.
- Informs other business decisions, such as pricing and distribution.
Steps in Market Segmentation, Targeting, and Positioning
- Market segmentation: identify bases and build profiles for segments.
- Market targeting: develop a measure of segment attractiveness and select target segments.
- Market positioning: develop positioning for target segments and a marketing mix for each segment.
Types of Market Segmentation
- Demographic segmentation: divides audiences based on observable differences, such as age, gender, income, and race.
- Behavioural segmentation: separates people into different classes based on similar patterns of action.
- Geographic segmentation: segments markets based on location to know customer needs.
Characteristics of Market Segmentation
- Identifiable: individuals comprising the segment can be found and categorized to target them.
- Cohesive: consumers should be part of a whole with unique values common to all.
Market Segmentation in the Travel Industry
- Country of origin: customizes marketing efforts by language, imagery, and platforms.
- Age: customizes marketing message, design, and channels.
- Life stage: alternative to age-based segmentation.
- Gender: divides potential customers by male or female.
- Travel motive: segments based on reasons for travel, such as recreation, fun, or health.
Learn about psychographic segmentation, which examines the intellectual and emotional characteristics of customers to understand their motivations and needs. Discover the benefits of market segmentation in improving campaign performance and informing product development.
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