Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MKT1002 > Lecture 6 Segmentation > Flashcards

Lecture 6 Segmentation Flashcards

1
Q

What is an issue with appealing to buyers?

A

It is not possible to appeal to all buyers in the market place, at least not in the same way
This is because there are so many different buyers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What must companies identify when they are wanting to market a product?

A

The parts of the market they can serve best and most profitably

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What sort of strategies should marketers design?

A

The strategies should be customer driven and build relationships with the right customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is target marketing?

A

Identifying market segments, selecting one or more of them and delivering products and marketing communications tailored to them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the total market divided into?

A

It is divided into segments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What can companies do through marketing segmentation?

A

Divide large, diverse markets into smaller segments that can be reached more efficiently and effectively with products and services that match their needs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How can the best way to segment the market be found?

A

There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combinations to find the best way

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the 4 key areas of segmentation variable?

A

Demographics
Geographics
Psychographics
Behavioural

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What variables are encompassed by demographics?

A 
Age
Gender
Income
Education
Social status
Family
Life stage
Occupation
Religion
Socio-economic status
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What variables are encompassed in geographics?

A 
Country
City
Density
Language
Climate
Area
Population
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What variables are encompassed in psychographics?

A 
Lifestyle
AIO
Concerns
Personality
Values
Attitudes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is AIO?

A

Activity
Interest
Opinion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What variables are encompassed in behaviour?

A 
Benefits sought
Purchase usage
Intent
Occasion
Buyer stage
User status
Life cycle stage
Engagement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does geographic segmentation involve?

A

Dividing a market into different geographical units such as nations, states, cities etc.
Either local, national or international

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is important to understand about different regions?

A

They have differences

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is one way in which different geographic units can be targeted?

A

By product type

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What might a company decide to do once it has carried out geographic segmentation?

A

The company may decide to operate in one or a few of these areas or all of them but paying attention to geographical differences in needs and wants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

How do many companies fit the needs of different geographic units?

A

By localising their products, services and promotions to fit the needs of different geographical units.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Give an example of a company that has localised to fit the needs of different geographic units?

A

Tesco’s and Tesco Express
Based on geography and location
Different products and store size

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is Macy’s strategy called?

A

MyMacy Strategy and it has 69 geographical districts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the most popular basis for segmenting customer groups?

A

Demographic segmentation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What varies closely with demographics?

A

Generally speaking customer needs, wants and usage rates vary closely with demographics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is a benefit of demographics over the other 3 main segmentation areas?

A

They are easy to measure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What will marketers always need to know about their target market?

A

Its demographic make up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Give an example of a company that has looked at age and lifecycle when designing products

A

Cadbury’s
Freddo for kids
Dairy Milk
Milk Tray for the older populations

26
Q

What is one problem with demographics?

A

Stereotyping

27
Q

What can be a poor predictor of?

A

Age can be a poor predictor of what stage in the life cycle people are at

28
Q

What has gender often been used in?

A

Beauty, clothing, toys and magazines

29
Q

Why is gender under scrutiny?

A

Because of how we now define gender and how we refer to it

30
Q

What sort of group do marketers often target in terms of income?

A

Many companies target more affluent consumers with luxury goods and services

31
Q

What is a marketing strategy for those with a higher income?

A

Higher touch marketing strategy

32
Q

What combination can location sometimes be?

A

Geographical segmentation and income segmentation coming together

33
Q

What should be avoided when looking at age and income?

A

Unconscious bias

34
Q

What does psychographic segmentation involve?

A

Dividing the market into different segments based on lifestyle or personality characteristics

35
Q

What type of segmentation is difficult to do?

A

Psychographic

36
Q

What approach is needed when carrying out psychographic segmentation?

A

A multi level approach is needed

37
Q

Why do people buy products?

A

To reflect their lifestyles

38
Q

What makes people act a certain way?

A

Their attitudes and beliefs

39
Q

What does behavioural segmentation involve?

A

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product or responses to a product

40
Q

What are two important factors in psychographics?

A

Self esteem and self image

41
Q

What is considered the best starting point for marketing segmentation?

A

Behavioural segmentation

42
Q

What has facilitated marketers’ knowledge of customers?

A

Digital technology

43
Q

What is meant by occasion in terms of behavioural segmentation?

A

Some products or services are seen as being appropriate for a particular occasion. Such products would be very useful during that particular occasion and would otherwise be irrelevant

44
Q

What are the 3 main types of occasion?

A

Universal
Regular
Rare

45
Q

Give an example of a rare occasion

A

A wedding

46
Q

Give an example of a regular occasion

A

A birthday

47
Q

Give an example of a universal occasion

A

World Cup

Easter

48
Q

What is meant by benefits needed in terms of behavioural segmentation?

A

Grouping based on the benefits that customers seek from the product of service

49
Q

How does segmentation according to benefits needed work?

A

Need to find the major benefits, the kinds of people who look for them and the brands that deliver them

50
Q

What is Haley’s definition of benefits needed?

A

Provide customers with what they want based on the benefits they derive from use (Haley, 1968)

51
Q

What are the two types of benefit?

A

Irrational and rational

52
Q

What is an example of behavioural segmentation?

A

Fitbit

53
Q

What did Morrissey and Baines (2011) do?

A 
They segmented the Irish youth participation market depending on the benefits young people sought in sport participation:
The enthusiast
The reluctant exerciser
The healthy looker
The social competitor
54
Q

What is meant by loyalty status in terms of behavioural segmentation?

A

Consumers can be loyal to a brand and can be divided into groups according to their degree of loyalty

55
Q

What can loyalty depend on>

A

The product or service

56
Q

Why are highly loyal customers assets?

A

They can do your marketing for you

57
Q

Do customers have to be loyal to just one brand?

A

No, they can be loyal to a few brands (but not all)

58
Q

What are 3 groups of loyalty?

A

Devotees
Brand communities
Brand cults

59
Q

What are multiple segmentation bases used for?

A

They are used to identify smaller, better defined target groups

60
Q

Why is segmentation important?

A

It helps us to better understand customers, reach them more efficiently through tailored offerings and communication

61
Q

What 5 things should marketing segments be?

A 
Measurable
Accessible
Substantial
Differential
Actionable
62
Q

Give an example of a company that segments markets for other companies at a cost

A

ACORN

Experian Marketing Services

MKT1002 (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions