Session 4

Question 1

What is segmentation?

Answer 1

Identify variables that allow you to break up the market into different groups of people

Question 2

What is targeting?

Answer 2

Evaluating the attractiveness of the segments, and choose a segment to market to

Question 3

What is positioning?

Answer 3

Orient your marketing actions to meet needs of the target segment

Question 4

What is market?

Answer 4

People or organizations with needs or wants and the ability and willingness to buy

Question 5

What is market segment?

Answer 5

A subgroup of people or organizations that (1) have a similar product needs; (2) will respond similarly to marketing action

Question 6

Market segmentation?

Answer 6

The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.

Question 7

What is undifferentiated/mass marketing?

Answer 7

Marketing to the entire market in the same way

Question 8

What is goal of undifferentiated/mass marketing?

Answer 8

Reach the widest audience possible

Question 9

What are advantages and disadvantages of undifferentiated/mass marketing?

Answer 9

A: Save resources because you only have to manage one product
D: Not all products truly have a mass appeal

Question 10

What is differentiated/segmented marketing?

Answer 10

Separate offerings for separate target markets

Question 11

What is goal of differentiated/segmented marketing?

Answer 11

Increase sales in each target market

Question 12

What are advantages and disadvantages of differentiated/segmented marketing?

Answer 12

A: Create strong market presence
D: Can be expensive and challenging to succeed in multiple target markets

Question 13

What is concentrated/niche marketing?

Answer 13

Focus only on small target market

Question 14

What is concentrated/niche marketing?

Answer 14

Establishing a competitive advantage amongst this ‘minimum viable audience’

Question 15

What are advantages and disadvantages of concentrated/niche marketing?

Answer 15

A: Saves resources - especially good strategy for smaller companies
D: Vulnerable to changes in demand amongst the niche market

Question 16

Why do we segment? (3) + (1) thing we must ensure

Answer 16

1. More precise definition of who your customers are and what they need
2. Clarify marketing objectives
3. Improve resource allocation
4. BUT, we need to find a segment that is small enough to serve, and large enough to be profitable

Question 17

How to segment (2 principles)?

Answer 17

1. Know your market (and deliver what THEY need)
2. Aim to be the best for the particular market segment you serve (be best at something, good enough at everything else, deliver value to customers better than competitors)

Question 18

How to segment (5 parts)?

Answer 18

1. Establish strategy and objectives
2. Group buyers into segments
3. Evaluate segment attractiveness, target market size
4. Select your target segment(s)
5. Take marketing actions to reach target segments

Question 19

How to group customers into segments? (3)

Answer 19

1. Understand the benefits that the customers seek
2. Partition the market and develop prototypical customer profiles based in those benefits
3. Find observable segmentation bases (geography, demographics, psychographics, behaviors) that discriminate among the benefit segments.

Question 20

What are observable segment bases (4)?

Answer 20

1. Geographic (country, province, city, rural/urban)
2. Demographic (age, gender, family size, income)
3. Psychographic (personality, lifestyle, attitudes)
4. Behavioral (observed behaviors like prior use)

Question 21

What are 5 criteria for choosing desirable target market?

Answer 21

1. Size
2. Growth
3. Cost of reaching them
4. Compatibility/ ease of entry
5. Competitive position