Chapter 6

Question 1

What does STP stand for?

Answer 1

Segment of market
Target(ing) best customers
Positioning offering

Question 2

What is market segmentation?

Answer 2

The process of grouping customers with similar needs to better target them and boost satisfaction.

Question 3

What is market targeting?

Answer 3

The process of picking which customer groups to focus on after market segmentation.

Question 4

List the advantages of market segmentation.

Answer 4

Focus on customer needs
Better resource allocation
Unveils new opportunities like unexplored segments.

Question 5

List the disadvantages of market segmentation.

Answer 5

Very expensive
Limited reach
Product cannibalization

Question 6

What is the criteria for effective market segmentation? IMASM

Answer 6

Identify group
Measure size
Accessibility
Sustainable
Meaningful

Question 7

List the levels of segmentation.

Answer 7

Micromarketing - same products to all customers
Niche Marketing - different products with segments
Segment Marketing - different products to one segment
Mass Marketing - different products to individual needs