Chapter 12: Market segmentation and the selection of target groups Flashcards

1
Q

Market segmentation and the selection of target groups is part of

A

strategic retail marketing policy

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2
Q

Consumers become more and more

A

individualistic

➔ Difficult to place them in one target group and describe them!
➔ Different needs on different moments and locations!
➔ Challenge for retail!

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3
Q

Market segmentation

A

Dividing the market into more or less homogenous groups of individuals with common characteristics and a similar purchasing behaviour

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4
Q

Segmentation criteria

A
  • Heterogeneity of needs: needs of the segments must distinguish themselves from other groups
  • Measurability: criteria of the segment must be measurable
  • Approachability: segment must be reachable through promotional and distributional technique
  • Size: segment must be large enough to be economically exploitable
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5
Q

Segmentation strategies
A-priori segmentation:

A

▪ Classifying based on general characteristics and then assessing
whether there are differences in behavioural characteristics
between or among groups
▪ Methodology disadvantage is that the segments are not
homogeneous in terms of their product requirements,
purchasing behaviour and use of the product

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6
Q

Segmentation strategies
Ex-post segmentation:

A

▪ Groups of customers behave differently towards products and
homogenous segments are based on the similarity in
requirements, behaviour and use
▪ The advantage is that the requirements of homogeneity and
heterogeneity are met and there is a direct relationship to
purchasing behaviour

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7
Q

Most common segmentation strategies

A

▪ Geographical segmentation
▪ Demographic segmentation
▪ Psychographic segmentation
▪ Domain specific segmentation (bell curve)

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7
Q

We use target marketing in the current environment to

A

develop a store personality

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8
Q

CRM systems

A

In the physical world, we partially resolve the problem of anonymity with CRM systems. CRM stands for customer response management and is a system that allows a retailer to collect customer data to ultimately serve the customer better. Many retailers use customer cards, either physically or digitally in the app for example.

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9
Q

basic idea of CRM system

A

increase loyalty and then this should be shaped mainly by better responding to a customer’s needs rather than giving discounts or points. The goal is ultimately to create a greater connection between the retail chain and the customer.

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10
Q

Once there are enough users, the CRM system can be effectively deployed by

A

using concepts such as one-to-many marketing or also called group marketing and one-to-one marketing. One-to-many marketing involves looking more at groups that exhibit similar behaviour. Based on this data, information is sent to these groups.

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11
Q

If the retailer does not have access to a loyalty or CRM system, he can really only record visits. In doing so, he uses so-called

A

customer counting sytems, a system that does not quite do what it says, because it does not count customers but visitors. The systems are very sophisticated camera’s and can give insight into:
- Numbers, group size, gender
- Average frequency of visits per person
- Analyses of different parts and departments
- Where people have been

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