32 Questions
Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits.
True
Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product.
True
Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities so they differ in the climate, nature, etc.
True
Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
True
Market segmentation is the process that companies use to divide large markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs.
True
The STP model stands for Segmentation, Targeting, and Positioning.
True
Market targeting involves tailoring brands and promotion to the needs and wants of local customer groups. Is this statement true or false?
True
Undifferentiated marketing targets several different market segments and designs separate offers for each. Is this statement true or false?
False
Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers. Is this statement true or false?
True
Concentrated marketing targets a small share of a large market. Is this statement true or false?
True
Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Is this statement true or false?
True
Market segments must be diverse in order to be useful. Is this statement true or false?
False
Product position refers to the place the product occupies in consumers' minds relative to competing products. Is this statement true or false?
True
Competitive advantage can be gained through either lower prices or by providing more benefits that justify higher prices. Is this statement true or false?
True
Differentiated marketing targets the whole market with one offer. Is this statement true or false?
False
Market variability does not affect the choice of target market. Is this statement true or false?
False
What are the main variables used in demographic segmentation?
Variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
What does STP stand for in the context of marketing?
Segmentation, Targeting, and Positioning
What is the purpose of market segmentation?
To divide large markets into smaller, more reachable segments and match products and services to their unique needs.
What are the three main segmentation approaches for consumer markets?
Demographic segmentation, psychographic segmentation, and behavioral segmentation.
What is geographic segmentation based on?
Geographical units such as nations, regions, states, counties, or cities, differing in climate, nature, etc.
What is the STP model used for in marketing strategy?
To create value for targeted customers by effectively reaching and serving their unique needs.
What is the goal of differentiated marketing?
To achieve higher sales and stronger position
What is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations known as?
Micromarketing
What does product position refer to?
The way the product is defined by consumers on important attributes relative to competing products
What is the advantage of local marketing?
Tailoring brands and promotion to the needs and wants of local customer groups
What does market targeting involve?
Tailoring brands and promotion to the needs and wants of local customer groups
What is the STP model?
Segmentation, Targeting, and Positioning
What does behavioral segmentation divide buyers into groups based on?
Knowledge, attitudes, uses, or responses to a product
What does demographic segmentation divide the market into groups based on?
Variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality
What does psychographic segmentation divide buyers into different groups based on?
Social class, lifestyle, or personality traits
What is the main advantage of concentrated marketing?
More effective and efficient
Study Notes
Market Segmentation
- Market segmentation is the process of dividing large markets into smaller, more manageable groups that can be targeted more efficiently and effectively.
- The goal of market segmentation is to provide products and services that match the unique needs of each segment.
Types of Segmentation
- Psychographic segmentation: divides buyers into different groups based on social class, lifestyle, or personality traits.
- Behavioral segmentation: divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product.
- Geographic segmentation: divides the market into different geographical units, such as nations, regions, states, counties, or cities, which differ in climate, nature, etc.
- Demographic segmentation: divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
Marketing Strategy
- The STP model stands for Segmentation, Targeting, and Positioning, and is used to guide marketing strategy.
- Market targeting involves tailoring brands and promotion to the needs and wants of local customer groups.
- Differentiated marketing targets multiple segments with different offers.
- Concentrated marketing targets a small share of a large market.
- Micromarketing involves tailoring products and marketing programs to suit the tastes of specific individuals and locations.
Key Concepts
- Product position refers to the place the product occupies in consumers' minds relative to competing products.
- Competitive advantage can be gained through either lower prices or by providing more benefits that justify higher prices.
- Local marketing involves tailoring products and marketing programs to the needs and preferences of local customers.
- The main advantage of concentrated marketing is that it targets a small, focused group, allowing for more efficient use of resources.
True or False Statements
- Undifferentiated marketing targets several different market segments and designs separate offers for each: False
- Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers: True
- Concentrated marketing targets a small share of a large market: True
- Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations: True
- Market segments must be diverse in order to be useful: False
- Product position refers to the place the product occupies in consumers' minds relative to competing products: True
- Competitive advantage can be gained through either lower prices or by providing more benefits that justify higher prices: True
- Differentiated marketing targets the whole market with one offer: False
- Market variability does not affect the choice of target market: False
Test your knowledge about market segmentation and the STP (Segmentation, Targeting, Positioning) model used by companies to reach potential customers more effectively. This quiz covers the process of market segmentation and the requirements for effective segmentation in consumer, business, and international markets.
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