7. Market Segmentation Flashcards
1
Q
what is market segmentation
A
market segmentation is sub-dividing a market into distinct groups of customers with common characteristics
2
Q
customers usually…
A
- differ in some respect
- grouped into homogeneous segments
3
Q
segmentation allows firms to…
A
isolate and target specific markets
4
Q
segmentation variables include:
A
- demographic
- geographic
- psychographic
5
Q
demographic
A
who they are (population characteristics) e.g. age sex
6
Q
geographic
A
where they are (location characteristics) e.g. local, regional, national
7
Q
psychographic
A
how they think (lifestyle characteristics) e.g. attitudes, personality
8
Q
segmentation/target market process
A
- identity bases for segmenting the market
- develop profiles
- select most attractive segment
9
Q
requirements for effective market segmentation
A
- similarity within segments
- differences between segments
- targetability
- makes sense
10
Q
advantages of market segmentation
A
- identifies potential target markets, opportunities and threats
- determines marketing mix
11
Q
limitations of market segmentation
A
- segments may not exist in reality
- may not be easily identifiable
- result in missed opportunities
