Exam 2

Question 1

Effective Segmentation Will Be

Answer 1

1. Measurable – Can be quantified (size, purchasing power).
   
   2. Accessible – Can be reached and served effectively.
   3. Substantial – Large enough to be profitable.
   4. Differentiable – Responds differently to marketing efforts.
   5. Actionable – The company can develop strategies to serve it.

Question 2

Segmentation does what

Answer 2

Divides a heterogeneous market into smaller, more homogeneous subgroups

Question 3

What are the types of segmentation

Answer 3

o Geographic (Population density, population growth, population size, climate, region)
o Demographic (Age, generational group, family and household, gender, occupation, income, education, race and ethnicity, social class, geodemographics (combines geographic and demographic characteristics))
o Psychographic (Personality, lifestyle, values, attitudes, interests, opinions)

Question 4

Steps of target marketing

Answer 4

o Analyze market segments (segment size/growth, competitive forces, strategic fit) > Develop profiles of each potential target market (primary, secondary, tertiary, target markets to abandon for future development) > Select target market approach (Undifferentiated, differentiated, concentrated, customized)

Question 5

Target Strategies

Answer 5

1.) Undifferentiated:
A single marketing mix
directed at the entire
market for a particular
product

2.) Concentrated:
One marketing mix
directed at a single market
segment

3.) Differentiated:
Individual, specific
marketing mixes directed
at two or more segments

4.) Customized (One to
One):
Marketing mix directed at
individual customers