Session 4

Question 1

Do you do segmentation on demographic ?

Answer 1

You should never segmentation on demographic but on behavior, responsiveness.

Question 2

What is elbow plot ?

Answer 2

elbow plot is the number of clusters that are the kink of the elbow

Question 3

What is STP approach ?

Answer 3

STP :
Segmentation
Targeting
Positioning

Question 4

What are the 6 criteria that an ideal target segment should meet ?

Answer 4

1) Based on customer needs
2) Different than other segments
3) Differences
4)
5)
6)

Question 5

What is the GE Matrix ?

Answer 5

It’s matrix to define what are the best target segments.

Question 6

What are the 4 P of Positioning ?

Answer 6

Place
Price
Promotion
Product

Question 7

What is the Positioning statement ?

Answer 7

1) Who are th customers ?
2) What is the set of needs that the product or service fulfills ?
3) Why is this product/service the best option to satisfy your needs (relative to competition or substitute, support for why) ?

For…“who”. we offer .”what”.. that .”what”.. because of ..”why”. .

Question 8

Give 2 examples of nieghborhood segmentation.

Answer 8

Examples of neighborhood segmentation :

• The PRIZM methodology
• Claritas

Question 9

When does the segmentation could fail ?

Answer 9

Using same segmentation scheme for different business objectives

• Too much focus on techniques
• Using

Question 10

Success of segmentation …

Answer 10

Success of segmentation depends :
Identifiable
…