targeting and segmenting the market

Question 1

how can markets be sorted?

Answer 1

into different sections, known as segments

Question 2

what is each segment made up of?

Answer 2

consumers with shared characteristics, needs and interests

Question 3

what does it mean by targeting?

Answer 3

identifying which segment of the market an enterprise wants to sell its products and services to

Question 4

why do enterprises segment and target their markets?

Answer 4

for various reasons

Question 5

what is the process of market segmentation?

Answer 5

the process of breaking down a large market into much smaller groups of consumers

Question 6

what does an enterprise analyse?

Answer 6

the market and divide it into segments, each containing consumers with similar characteristics

Question 7

why does an enterprise segment the market?

1. what does an enterprise want a better understanding of?

2 + 3. what does an enterprise required to develop?

4. why do they choose marketing methods?

Answer 7

1. to have a better understanding of the characteristics, needs and interests of current and potential customers
2. to develop products that suit the needs of different market segments
3. to develop products for a particular market segment
4. to choose marketing methods that are better suited to the target market

Question 8

target market

Answer 8

the segment of the market that an enterprise wants to sell its products to

Question 9

how can markets be segmented?

Answer 9

in different ways as enterprises may target one or more segments

Question 10

what may enterprises target within each segment?

Answer 10

different categories

Question 11

market segments:
demographic segmentation (8)

Answer 11

covers various characteristics of consumers - age, gender, family size, ethnicity/race, religious/cultural beliefs, income, education level, socio-economic group

Question 12

market segments:
geographic segmentation

Answer 12

where consumers live

Question 13

market segments:
psychographic segmentation (5)

Answer 13

social class
attitudes
lifestyle
personality characteristics

Question 14

market segments:
behavioural segmentation (4)

Answer 14

consumer spending choices
how often customers buy products
benefits consumers expect to get from them
how loyal consumers are to brands and enterprises

Question 15

what is the usage rate?

Answer 15

how often customers buy products