Segmentation and Targeting

Question 1

a group of customers who share a similar set of needs and wants
“For segments to be truly meaningful, the needs of customers in one segment must be distinct from those in other segments on dimensions that affect the purchase or use of a given product”

Answer 1

Market segment

Question 2

Market segments are ___, not created by firms

Answer 2

Uncovered

Question 3

• compare and contrast each of the potential segments and
• then choose the segment(s) the firm is best able to satisfy given its

Answer 3

Segmentation is critical because it enables firms to

Question 4

1. knowledge
2. usages
3. attitude towards a product
4. loyalty status
5. benefits sought in a product (needs)
6. spending patterns

Answer 4

Marketers divide buyers into different groups who have a specific behavioral pattern in common:

Question 5

allows companies to communicate how their products will
satisfy consumers in each situation

Answer 5

Marketers need to understand the usage situations
for which their products

Question 6

The oldest form of segmentation.

Answer 6

Demographic segmentation

Question 7

Clustering of consumers based on the following variables:
* Age and life-cycle stage
* Life stage
* Gender
* Income
* Occupation
* Generation
* Race and culture

Answer 7

Demographic segmentation

Question 8

1. they’re often associated with consumer needs and wants, but ALSO
2. it’s the easiest segmentation strategy

Answer 8

Many companies use demographic segmentation because

Question 9

quantitative measures of lifestyle preferences

Answer 9

Psychographics

Question 10

based on consumers’
– Activities (sports, hobbies, work, vacations…)
– Interests (community, family, home, fashion, food…)
– Opinions (politics, business, education…)
– Media usage patterns
– Personality variables (often The Big 5; also subsidiary traits)

Answer 10

Psychographic segmentation

Question 11

are the measurement of the general lifestyle patterns
of a population

Answer 11

General Lifestyle Schemes

Question 12

Firms can also conduct specific lifestyle studies on individual or household lifestyles specific to
their product or service

Answer 12

Product-Specific Lifestyle Schemes

Question 13

Psychographics & sales, while it is good for building and reinforcing brand attitudes and affinity, it is generally considered to be ___ capable of predicting sales than behavioral segmentation

Answer 13

less

Question 14

Nations, states, regions, counties, cities, or neighborhoods
Operate in all areas (with localization) or just a few areas

Answer 14

Geographical segmentation