chapter 9

Segmentation is a method applied to identify and describe target groups.

Segmentation can be approached by 2 different groups of techniques: hierarchical segmentation and typologies formation.

Homogeneity and distinction are the only criteria used to identify market segments.

Each segment must offer a different response to the marketing mix stimulus.

Geographic, demographic and socioeconomic are general and objective segmentation criteria.

Buying intention is a general segmentation criteria.

Market segmentation process includes formulation various marketing mix for various segments.

Focusing in a single segment the company enjoys operating economies through specialising its production, distribution, and promotion.

The segmentation criteria doesn't have to be easily identifiable and measurable.

The main shortcoming of a selective market segmentation strategy is that the product may be replaced by an entirely new technology any time.

For selecting an ideal market segment the company must be able to convert potential customers into buyers cost effectively.

The stage of the life cycle the product is in can be a limitation to select a market and positioning.

The threat of entry of new competitors is not relevant for assessing the tentative segments to target by a company.

The first stage in typological techniques is the groups formation, where we aggregate individuals according to their similarities.

The segments must represent enough profit potential to justify the development of a marketing-mix strategy.

Chi-squared test belongs to the classical methods in segmentation techniques.

Large companies can approach full market only by undifferentiated marketing.

When segmenting 'reaction' means a similar response to market of the members of the segment.

Attitudes, perceptions and sensitivity to the marketing mix are specific and subjective criteria..

For selecting an ideal market segment potential customers from different segments have the same quality preferences.