S4: Segmentation, Targeting & Position

Question 1

What are bases?

Answer 1

Characteristics that tell us why segments differ (e.g., needs, preferences, decision processes)

Question 2

What are descriptors?

Answer 2

Characteristics that help us find & reach segments

Question 3

What are the customer criteria for target market selection?

Answer 3

Basis of customer value

Segment size & growth rate/potential

WTP, CLV

Question 4

What are the competitive structure criteria for target market selection?

Answer 4

Intensity

Competitors’ strengths & weaknesses

Underserved needs?

Risks (economic, political, technical)

Question 5

What are the company criteria for target market selection?

Answer 5

Objectives / image, core competencies

Customer base (synergy / cannibalization)

Profitability (resources / constraints)

Question 6

What is WTP?

Answer 6

Willingness to pay

Question 7

What are examples of geographic segmentation dimensions?

Answer 7

Location

Climate

Population density

Question 8

What are examples of demographic segmentation dimensions?

Answer 8

Age

Income

Marital status

Education

Profession

Industry

Question 9

What are examples of psychographic segmentation dimensions?

Answer 9

Activities

Interests

Opinions

Lifestyles

Attitudes

Values

Question 10

What are examples of behavioral segmentation dimensions?

Answer 10

Usage

Loyalty

Occasions

Benefits

Decision stage

Marketing mix responsiveness