L6 Segmentation Targeting

Question 1

what is marketing segmentation

Answer 1

• to define the market and find segments with it.
• can then target by selecting the segments that can be served the most efficiently and effectively by the companies resources.
• identify market needs, link needs to actions then execute marketing program actions

Question 2

when is marketing segmentation used

Answer 2

• when there is opportunity for increased returns

Question 3

what are the 3 segmentation strategies

Answer 3

• one product and multiple market segments eg movies
• multiple products and multiple market segments eg cars
• segments of one- ‘mass customisation’ eg build-to-order, build-a-bear

Question 4

Explain the 5 criteria to segment markets

Answer 4

1. group potential buyers into segments who have common needs and respond similarly to a marketing action
2. group products to be sold in categories
3. develop a market-product grid and estimate the size of the markets
4. select target markets
5. take marketing actions to reach target markets

Question 5

explain the 4 segmentation bases

Answer 5

• demographic; age, gender, income level, family status, occupation, ethnicity, education level
• geographic; where people live or shop, climate, culture, population, urban sub urban rural, location
• psychographic; lifestyle, personality, interests, beliefs, activities, attitudes, goals, values
• behavioural; loyalty, engagement, benefits sought, occasion

Question 6

what criteria to use when forming segments

Answer 6

1. simplicity and cost effectiveness
2. potential for increased profit
3. difference of needs among segments and similarity within segments
4. potential of a marketing action to reach segment