Market Segmentation and Strategic Targeting

Question 1

A marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action

Answer 1

Market segmentation

Question 2

enables
companies to target different categories of consumers who perceive the full
value of certain products and services differently from one another.

Answer 2

Market segmentation

Question 3

three criteria to identify different market
segments:

Answer 3

1. Homogeneity
2. Distinction
3. Reaction

Question 4

common needs within a segment

Answer 4

Homogeneity

Question 5

being unique from other groups

Answer 5

Distinction

Question 6

a similar response to the market

Answer 6

Reaction

Question 7

The objective of market
segmentation

Answer 7

MINIMIZE RISK by determining which products have
the best chances of gaining a share of a target market

determining
the BEST WAY TO DELIVER the products to the market.

Question 8

five common types of market segmentation

Answer 8

Demographic Segmentation
Firmographic
Geographic
Behavioral
Psychographic

Question 9

is one of the simple, common methods of market
segmentation.

It involves breaking the market into
age, income, gender, race, education, or occupation.

Answer 9

Demographic segmentation

Question 10

Under what market segmentation is this kind of example?

Example: The market segmentation strategy for a new video game console
may reveal that most users are young males with disposable income.

Answer 10

Demographic segmentation

Question 11

is the same concept as demographic
segmentation.

this strategy looks at
organizations and looks at a company’s number of employees, number of
customers, number of offices, or annual revenue.

Answer 11

Firmographic Segmentation

Question 12

Under what market segmentation is this kind of example?

Example:
A corporate software provider may approach a multinational firm
with a more diverse, customizable suite while approaching smaller companies
with a fixed fee, more simple product.

Answer 12

Firmographic Segmentation

Question 13

is technically a SUBSET of demographic
segmentation.

This approach groups customers by PHYSICAL LOCATION,
assuming that people within a given area may have similar
needs.

Answer 13

Geographic segmentation

Question 14

Under what market segmentation is this kind of example?

Example: A clothing retailer may display more raingear in their Pacific
Northwest locations compared to their Southwest locations.

Answer 14

Geographic segmentation

Question 15

relies heavily on market data, consumer actions, and
decision-making patterns of customers. Based on how they have previously interacted with markets.

spending habits

Answer 15

Behavioral segmentation

Question 16

Under what market segmentation is this kind of example?

Example: Millennial consumers traditionally buy more craft beer, while older
generations are traditionally more likely to buy national brands.

Answer 16

Behavioral segmentation

Question 17

Often the most difficult market segmentation approach

strives to classify consumers based on their lifestyle,
personality, opinions, and interests.

Answer 17

psychographic
segmentation

Question 18

Under what market segmentation is this kind of example?

Example: A fitness apparel company may target individuals based on their
interest in playing or watching a variety of sports.

Answer 18

Psychographic segmentation

Question 19

Benefits of Market Segmentation

Answer 19

Increased resource efficiency.
Stronger brand image.
Greater potential for brand loyalty.
Stronger market differentiation.
Better targeted digital advertising.

Question 20

Limitations of Market Segmentation

Answer 20

Higher upfront marketing expenses.
Increased product line complexity. Greater risk of misassumptions. Higher reliance on reliable data.