The Benefits Of Market Segmentation

Question 0

Market segmentation

Answer 0

The division of a diverse market into smaller, relatively homogeneous groups with similar needs, wants, and purchase behaviors

Question 1

Market

Answer 1

A group of customers who need or want a particular product and have money to buy it

Question 2

4 factors to identify market segments

Answer 2

Demographics
Psychographics
Geography
Behavior

Question 3

Demographics

Answer 3

The study of statistical characteristics of a population

Question 4

Psychographics

Answer 4

Classification of customers on the basis of their psychological makeup, interests, and lifestyles

Question 5

Geographic segmentation

Answer 5

Categorization of customers according to their geographical location

Question 6

Behavioral segmentation

Answer 6

Categorization of customers according to their relationship with products or response to product characteristics

Question 7

Target markets

Answer 7

Specific customer groups or segments to whom a company wants to sell a particular product

Question 8

4 strategies of reaching target markets

Answer 8

Undifferentiated marketing
Concentrated marketing
Differentiated marketing
Micromarketing

Question 9

Undifferentiated marketing

Answer 9

Ignore differences among buyers and offer only one product or product line and present it with the same communication, pricing, and distribution strategies to all potential buyers

Question 10

Differentiated marketing

Answer 10

manufacture or sell a variety of products to several target customer groups

Question 11

Concentrated marketing

Answer 11

Focuses on only a single market segment

Question 12

Micromarketing

Individualized marketing

Answer 12

Firm’s target single location or single customer

Question 13

Customer lifetime value

Answer 13

Total potential revenue from each customer over a certain time span minus the cost of attracting and keeping that customer

Question 14

Positioning

Answer 14

Managing a business in a way designed to occupy a particular place in the minds of target customers

Question 15

Who ultimately decides positioning?

Answer 15

The customers

Question 16

Goal of market segmentation

Answer 16

Understand why and how certain customers buy what they buy so that a firm’s finite resources can be used to create and market products in the most efficient manner possible

Question 17

Why market segmentation is good

Answer 17

Maximizes effectiveness in reaching subgroups in the market. Each can then be approached differently in a way that’s most likely to appeal to them.

Question 18

Customer loyalty

Answer 18

The degree to which customers continue to buy from a particular retailer or buy the products of a particular manufacturer or service provider