Chapter 5 Flashcards
1
Q
Market segmentation
A
The process of dividing the market into groups of customers with similar needs and purchasing behaviours
2
Q
Selecting a Segmentation Basis
A
- Identification bases
2. Response profile bases
3
Q
Identification bases
A
Segmentation basis
Relatively permanent description of customers that can be used to classify them into distinct groups
4
Q
Response profile bases
A
Segmentation basis
Segment customers according to their needs, benefits sought or buying behaviours
5
Q
Examples of identification bases
A
- Geographic segmentation
- Demographic segmentation
- Psychographic segmentation
6
Q
Examples of profile bases
A
- Benefit segmentation
- User rate segmentation
- Attitude segmentation
- Usage occasion segmentation
- Loyalty status segmentation
- User status segmentation
7
Q
Segmenting Business Markets
A
- Organizational geographic segmentation
- Organizational demographics
- Organizational cultural segmentation
8
Q
Segmentation Evaluation Criteria
A
- Size & growth
- Profitability
- Accessibility
- Corporate vision, goals
- Competitive intensity
- Distinctive competencies
ALL are Market Attractiveness Factors
9
Q
Target Marketing Strategies
A
- Undifferentiated strategy
- Single-segment strategy
- Multiple-segment strategy
- Mass customization
