Lecture 3

Question 1

Segmentation

Answer 1

The activity of grouping customers based on similar needs and profiling each segment.

Question 2

Targeting

Answer 2

The activity of evaluating the attractiveness of each segment, selecting one or more segments to pursue and designing marketing programs to serve them.

Question 3

Positioning

Answer 3

Defining the value proposition for each target segment.

Question 4

The benefits of segmentation to the organization

Answer 4

1. Identification of unfulfilled needs
2. Better product design
3. More targeted promotion
4. Increased customer satisfaction

Question 5

The benefits of segmentation to the customer

Answer 5

1. Convenience and time saving
2. tailored products and services
3. Relevant offers
4. Personalized experience

Question 6

What is the segmentation process

Answer 6

1. Need based segmentation
2. Segment identification
3. Segment attractiveness
4. Segment profitability
5. Segment positioning
6. Strategy and marketing mix

Question 7

Need based segmentation(segmentation process)

Answer 7

Grouping customers into segments based on benefits and needs sought by customer in solving a problem.

Question 8

Segmentation Identification

Answer 8

For each segment, determining the demographic, lifestyle and usage behaviors, that make segments distinct and identifiable.

Question 9

Segment attractiveness

Answer 9

Using attractiveness criteria, determine the overall attractiveness of the segment.

Question 10

Segment profitability

Answer 10

Determine the segment profitability and net marketing contribution.

Question 11

Segment positioning

Answer 11

For each segment, creating a positioning strategy and value proposition based on the segments needs and characteristics.

Question 12

Strategy and marketing mix

Answer 12

Test attractiveness and optimize marketing mix based on customer feedback.

Question 13

Characteristics of useful segmentation

Answer 13

1. Identifiable
2. Substantial
3. Stable
4. Accessible
5. Differentiable
6. Actionable

Question 14

The 3 W’s of of segmentation

Answer 14

1. Characteristics: Who -> who are the customers?
2. Purchase Behavior: What -> What have the customers done?
3. Purchase Decision: Why -> Why do customers make the decisions they do?

Question 15

To identify customer needs in the B2C segment

Answer 15

We assess: Demographics, lifestyle, usage behavior

Question 16

To identify customer needs in the B2B segment

Answer 16

We assess: firmographic forces, business culture, usage behavior

Question 17

What do we assess for both, B2B and B2C to identify customer needs

Answer 17

1. Geographics 2. Psychographics 3. Demographics 4. Behavior 5. Benefits sought

Question 18

Which factors should influence the selection of segments

Answer 18

1. Segment characteristics 2. Competition 3. Company Fit

Question 19

What should we look out for in segment characteristics while selecting segments to target?

Answer 19

1. Segment size
2. Growth rate
3. Profitability

Question 20

What should we look out for in competition while selecting segments to target?

Answer 20

1. Competitors strengths
2. Competitive Intensity
3. Competitors resources

Question 21

What should we look out for in company fit while selecting segments to target?

Answer 21

1. Objectives
2. Competencies
3. Resources

Question 22

How does segmentation and targeting influence an organizations strategy?

Answer 22

1. Product strategy
2. Pricing strategy
3. Communication strategy
4. Salesforce/Channel Strategy
5. Customer Management Strategy

Question 23

conjoint analysis

Answer 23

A market research technique that asks customers to make a series of trade-offs between component attributes; analysis of these trade-offs helps companies determine how to develop and price the features of products
and services.

Question 24

demand space segmentation

Answer 24

Dividing the market into unique demand spaces that exist at the intersection of different usage occasions and consumers’ emotional and functional needs.