Lecture 6 - Market Segmentations and positioning

Question 1

What is market segmentation?

Answer 1

A process of dividing the total heterogeneous market into several homogeneous groups with similar characteristics of interests

Question 2

What are the bases of market segmentation?

Answer 2

Demographics - age, income, sex, education
Geographics - Urban/rural, country location
Psychographics - Lifestyle personality
Behaviour - Usage rates, benefits sought

Question 3

Bases of segmenting business markets

Answer 3

Geographic
product/technology
Size of account
Number of employees

Question 4

A Market manager must decide between

Answer 4

How to segment the market
How many segments to focus on
Who will be target markets

Question 5

What does it mean by product positioning?

Answer 5

The place the product occupies in the mind of the consumers relative to competing products.
-The way the product is “defined” by the consumer on important attributes

Question 6

Perceptual maps

Answer 6

A graphical respresentation of consumer perceptions of brands on important attributes

Question 7

Positioning statement

Answer 7

Target market -> need->brand concept -> points of differentiation

To “Market” who “Needs”, company is a “brand concept” that “Differentiation points”

Question 8

Example of Behaviour segmentation

Answer 8

Dandruff Shampoo, Sensidyne sensitive toothpaste.

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