how we segment the market

Question 1

basis of segemntation

Answer 1

WHY do customers make the decisions they do?
(needs preferences decision process motivation)
WHAT have customers done?
(usage, loyalty, profitability)
WHO are the customers?
(demographics, media habits, lifestyle)

Question 2

RFM? What category of basis of segmentation does it fall to?

Answer 2

Recency - when was the last purchase
frequency - frequency of transactions
monetary - willingness to spend

Question 3

segementing?

Answer 3

selection basis by which we can separate individuals or businesses into groups based on similar needs and understanding of the differences

Question 4

targeting three types?

Answer 4

segment characteristics (customer) - size/growth rate/profitability
-company fit (company) objectives/ competencies/resources
- competition strength/intensity/resources

Question 5

four target marketing strategies??

Answer 5

undifferentiated
multi-segment
concentrated (niche)
mass customization (one on one)

Question 6

undifferentiated
what?
advantage?
disadvantage?

Answer 6

-the market is one big market (mass-market) and develop one marketing mix (segmenting the market but treating everyone the same)
-potential savings on production/marketing costs
-unimaginative production offering/susceptible to competition

Question 7

multi-segment
what?
advantage?
disadvantage?

Answer 7

-select 2+ segments and develop distinct marketing mixes for each
-greater financial success/economies of scale/defensive
-high costs/cannibalization

Question 8

niche
what?
advantage?
disadvantage?

Answer 8

-select one segment for targeting marketing efforts
- concentration of resources/ better meet needs / stronger positioning
- segments can too small/ large competitors may be more effective

Question 9

mass customization
what?
advantage?
disadvantage?

Answer 9

• customize marketing mix for individual customers
  -tailored exactly to customer needs
  -high costs

Question 10

why are niche markets formed?

Answer 10

start-up or not well funded has limited resources
unique needs relative to the marketplace
-helpful because well-funded companies go after a generic approach

Question 11

what is the goal of targeting?

Answer 11

improves orgs chances of maximizing.its long-term profitability in those segments

Question 12

which strategies can targeting and segmenting influence?

Answer 12

product strategy
pricing
communication
sales force
customer management