Segmentation Flashcards
What is market segmentation?
Market segmentation is the process of dividing a diverse market into distinct and homogeneous subgroups of consumers or businesses with similar needs, characteristics, or behaviors.
What are the key bases for segmenting consumer markets?
Consumer markets can be segmented based on geographic, demographic, psychographic, and behavioral factors, enabling marketers to tailor products and marketing strategies to specific consumer segments effectively.
How does behavioral segmentation contribute to effective market segmentation?
Behavioral segmentation involves segmenting markets based on consumer behavior, such as usage occasions, loyalty status, and user status, providing valuable insights for marketers to develop targeted marketing strategies and offerings.
What are the requirements for useful market segments?
Useful market segments must be measurable, substantial, actionable, accessible, and differentiable, ensuring that marketers can effectively target and serve these segments.
What are the key bases for segmenting business markets?
Business markets can be segmented based on geographic location, industry type, company size, and purchasing behavior, enabling marketers to tailor products and services to specific business segments effectively.
What is the significance of market segmentation for marketing strategies?
Market segmentation enables marketers to identify and understand the diverse needs and preferences of consumer or business segments, allowing them to develop tailored marketing strategies and offerings that resonate with specific segments.
How does demographic segmentation contribute to effective market segmentation?
Demographic segmentation involves segmenting markets based on age, gender, income, and family life cycle, providing valuable insights for marketers to develop products and marketing strategies tailored to specific demographic groups.
What are the implications of multiple segmentation bases for market segmentation?
Multiple segmentation bases allow marketers to combine different segmentation variables, providing a more comprehensive understanding of consumer or business segments and enabling the development of highly targeted marketing strategies.
What are the key considerations when evaluating target market segments?
When evaluating target market segments, marketers consider the segment’s size, growth characteristics, structural attractiveness, and compatibility with the company’s objectives and resources to determine the most viable segments to target.
How does geographic segmentation contribute to effective market segmentation?
Geographic segmentation involves segmenting markets based on location, such as nations, regions, or neighborhoods, providing valuable insights for marketers to develop location-specific marketing strategies and offerings.
What is point of difference?
Attributes or benefits to consumers:
Associate strongly with a brand
Evaluate positively
Believe they could not find to the same extend with a competitive brand (unique).
What is Undifferentiated marketing?
Ignore market segment differences and target the whole market with one offer. What is common in the needs of the consumers rather than on what is different.
What is Differentiated marketing?
Target several market segments.
Design separate offers for each segment.
What is Concentrated (niche) marketing?
It is to focus on one or a few smaller segments or niche.
What is Local marketing and Individual marketing
Local marketing is to tailor the needs and wants of local customer groups in trading areas, neighborhoods, even individual stores. Individual marketing is to tailor products and marketing programs to the needs and preferences of individual customers.
