3 Segmentation, Targeting & Positioning 19 Flashcards
What is Market Segmentation?
It involves dividing a market into different segments that reflect different customer needs and wants
What are the 4 traditional ways of segmenting a market?
Demographic, Income, Behavioural, Geographical
Summary of the Demographic segment …
Age, gender, family, lifestyle, religion, nationality
Summary of the Income segment …
Dividing markets into different income segments, often on the basis of social-economic grouping
Summary of the Behavioural segment …
Dividing a market into segments based on the different ways customers use or respond to a product and the benefits they seek
summary of the Geographical segment …
Dividing a market into different geographical units, such as nations, regions, cities, neighbourhoods or other territories
What are the advantages of Market Segmentation?
Focuses resources on parts of a market here the business can succeed
Helps with new product development
Helps make the marketing mix more effective
What are the drawbacks of Market Segmentation?
Segmentation is an imprecise science- data about each market segment is not always available, up-to-date or reliable
