10. Identifying the target market

Question 1

What is segmentation?

Answer 1

The division of the market place into distinct subgroups or segments, each characterized by particular tastes and requiring a specific marketing strategy. The target market for any given product may be one or more of these segments.

Question 2

Segmentation is often based on what four sets of variables?

Answer 2

Geographic
Demographic
Psychographic
Behavioral

Question 3

What are geographic variables?

Answer 3

These relate simply to where consumers live (country, region, city) and whether they live in an urban or rural area. Usually these are too broad and cover too wide a range of people to be meaningful on their own.

Question 4

What are demographic variables?

Answer 4

• age
• gender
• ethnicity
• family status (single, married, children)
• income
• level of education
• occupation
• socioeconomic status

Question 5

What are psychographic variables?

Answer 5

• lifestyle (like to go out to eat and drink, the health-conscious)
• personality (show off wealth or knowledge of wine)
• values and beliefs (vegetarian, people who prefer organic, fair-trade, etc)
• interests (interested in wines from a particular country or region)

Question 6

What are behavioral variables?

Answer 6

• what benefit do they want from wine (quality, prestige, value)?
• when do they buy wine (regularly, special occasions)?
• What is there level of brand loyalty?
• What is their level of interest in wine?
• are they early adopters or late adopters?