Module E: Creating Value For Target Customers Flashcards
What is Market Segmentation?
Market segmentation is the process of diving a large, diverse market into segments based on their own distinct needs, characteristics, or behaviours that may require their own separate marketing strategies.
Which types of markets can be segmented?
- Consumer Market
- Business Market
- International Market
How can a consumer market be segmented?
- Geographically
- Demographically
- Behavioural
- Psychographic
Explain geographical segmentation
When a market is segmented based on geographical locations; town, city, state, region, country, continent, etc
Explain demographic segmentation
When the market is segmented based on variables such as family, social class, age, gender, religion, income, occupation, education, race, nationality, etc.
Explain psychographic segmentation
When the market is segmented based on social class, lifestyles, or personality traits.
Explain behavioural segmentation
When a market is segmented based on knowledge, attitudes, uses or responses to a product.
Give more information about behavioural segmentation
-> OCCASIONS: segmentation according to season
-> BENEFITS SOUGHT: finding the major benefits people look for in the product class
-> USER STATUS: divides buyers into ex-users, potential users, first-time users, and regular users of a product.
-> USAGE RATE: divides buyers into light, medium, and heavy product users.
-> LOYALTY STATUS: segment according to the frequency of buying different products of the same brand
What is multiple segmentation?
Multiple Segmentation is used to identify smaller, better-defined target groups.
How can a Business Market be segmented?
- geographically
- demographically
- benefits sought
- user status
- customer operating characteristics
- purchasing approaches
- loyalty status
- situational factors
- personal factors
How can an International Market be segmented?
- geographical location
- Economic factors
- Political-legal factors
- Cultural factors
What is inter-market segmentation?
Inter-market (international market) segmentation is when a company divides consumers into groups with similar needs, even if they’re located in different countries.
What are the characteristics of an effective segment?
M - measurable
A - accessible
S - susbtantial
D - differentiable
A - actionable
Explain MEASURABLE in MASDA
How much is a market segment is able to be counted or evaluated. The size and purchasing power needs to quantifiable so as to not complicate your advertisements.
Explain ACCESSIBLE is MASDA
Accessible is how much a market is able to be reached or communicated with. Customers need to be easily reached at an affordable cost to determine how certain ads can reach different target markets.
Explain SUBSTANTIAL in MASDA
This is how large or significant enough a market is to matter.
