Segmentation Flashcards
Market Segmentation
Dividing a market into smaller segments with distinct needs, characteristics or behavior that might require separate marketing strategies or mixes.
Name 4 types of segmentation
Geographic segmentation
Demographic
Psychograhpic
Behavioural
What is Geographic segmentation? Why is it useful?
Dividing a market into different geographical units, such as nations, states or countries.
It is useful to a company so they can pay attention to different geographical needs and wants.
What is Demographic segmentation? and why is it useful?
Dividing the market into segments, like age, gender, family size, family life-cycle, income, occupation, education, religion, race, generation, and nationality.
Demographics are useful for companies to target their markets and reach them efficiently.
What is psychographic segmentation?
Dividing a market into different segments based on social class, lifestyle or personality characteristics.
What is behavioral segmentation?
Dividing a market into segments based on consumer knowledge, attitudes uses or responses to a product.
Occasion segmentation
Dividing the market into segments according to occasions when the buyer gets the idea to buy, actually make their purchase or use the purchased item.
Benefit segmentation
The different benefits that consumers seek from the product.
Give 4 objectives of segmentation
Identifying new customers
Develop existing customers
Increase customer profitability
Identifying new markets
Define market segments
A group of customers with similar wants or needs
Market segmentation
Characteristics that have a significant implication for marketing strategy
What are the benefits of market segmentation for the business and customer?
Better goods and services
Better pricing
Greater space for differentiation
Stronger competitive position
What are the criteria for segmentation?
MASDA Segments should be: Measurable Accessible Sustainable Differentiable Actionable
Segmentation Issues
Effectiveness
Unintended exposure
Fragmented consumer markets
Assumption of consumer rationality
