Module 7: Targeting Attractive Marketing segment

Question 1

3 Reasons Market segmentation is Important

Answer 1

1. Slowing of population growth, product markets maturing
2. social and economic forces are expanding disposable income
3. micro segmentation (customization)

Question 2

Market Segmentation Process

Answer 2

1. Identify homogeneous segment that differs from other segments
2. Specify criteria that define the segment
3. Determine segment size and potential

Question 3

Segmentation Decisions

Answer 3

1. Who (demographics)
2. Where (trade region)
3. How they behave

Question 4

Behavioural descriptors

Answer 4

1. Consumer needs (benefits sought)
2. Product usage and purchase influence
3. Lifestyle (self-orientation)
4. Organizational behavioral attributes (purchasing structure and situation)

Question 5

Market Attractiveness/Competitive Position Matrix

Answer 5

1. Identify criteria to measure market attractiveness and competitive position
2. Weight market attractiveness and competitive position factors to reflect their relative importance
3. Rate the current position of each potential target market on each factor
4. Project the future position of each market based on expected environmental, customer and competitive trends
5. Evaluate implications of possible future changes for business strategies and resources requirements

Question 6

Identify criteria to measure market attractiveness

Answer 6

• Market attractiveness - customer needs and behaviour
  
  • Market segment size and growth rate
  • Macro trends

Question 7

Identify criteria to measure competitive position

Answer 7

• opportunity for competitive advantage
  
  • firm and competitor capabilities and resources
  • attractiveness of target industry

Question 8

Target Market Strategies

Answer 8

1. Niche-market
   
   2. Mass-market
   3. Growth-market

Question 9

Differentiated marketing

Answer 9

separate products and marketing strategies for differing segments (Marriott)

Question 10

inter-country segmentation

Answer 10

identify consumers with similar needs and wants reflected in their behaviour in the marketplace in a range of countries.