Chapter 8: Segmenting, targeting and positioning

Question 1

Types of Segmentation

Answer 1

Geographic:

• Regions of the world
• Market size
• climate

Demographic:

• Age
• Gender
• Income
• Ethnic background

Psycho-graphic:

• Personality
• Motives
• Lifestyles

Behavioural:

• what customers want
• Consumer needs

Question 2

Define Benefit sought

Answer 2

Segmenting ting according to the benefits that the consumers are seeking from a product or service. Needs and wants.

Question 3

Define usage rate

Answer 3

Segmentation based on the amount of product bought.

- First-time users, light or irregular users, medium users, heavy users

Question 4

Criterion for effective segmentation

Answer 4

• Sustainability
• Identifiability
• Accessible
• Responsiveness

Question 5

3 general strategies for selecting target markets

Answer 5

1. Undifferentiated
   - one marketing mix for the entire market
2. Concentrated
   - A markget niche to target - single segment
3. Multi-segment
   - Serve two or more segments with distinct marketing mixes for each

Question 6

Define one-to-one marketing

Answer 6

Selling products to a customer to build long-term, personalized and profitable relationships with each customer.

Question 7

Define Re-positioning

Answer 7

Changing the consumer’s perception of a brand in relation to competing brands