Chapter 5 Headings

Question 1

Types of market segmentation

Answer 1

Need-based
Demographic
Geographic
Segmentation by product, service or channel
Psychographic
Behaviouristic

Question 2

Alternatives to market segmentation

Answer 2

One-to-one marketing
Mass customisation
Permission marketing

Question 3

Segmentation process

Answer 3

1. Defining the market and scope of segmentation
2. Deciding on an approach to segmentation
3. Identify and profile segments

Question 4

Targeting process

Answer 4

Assessing segment attractiveness
Assessing relative competitive position
Determining market targets

Question 5

Positioning 3 key stages

Answer 5

Positioning concept
Positioning strategy
Positioning effectiveness

Question 6

Perceptual mapping

Answer 6

Step 1: Determine the product-market segment
Step 2: Design perceptual map
Step 3: Identify competing products or brands
Step 4: Plot all competitors on the map

Question 7

Barriers to segmentation

Answer 7

CIPPI kan nie segment nie
Capability
Implementation
Political
Process
Infrastructure

Other:
Excessive interest in customers identities
Too little focus on customer behaviour
An obsession with the technical detail of segmentation