Topic 5

Question 1

What are the benefits of segmentation to the firm?

Answer 1

increases profitability
effective monitoring of target markets
facilitates development of staff expertise
identification of new market niches

Question 2

What are the benefits of segmentation to the customer

Answer 2

receive the right product
higher standards of
price savings
remove source of irritation

Question 3

What are the pitfalls of segmentation to the firm?

Answer 3

missing out on potential business
cut-throat competition
increased risks

Question 4

What are the common segmentation variables

Answer 4

geographic
demographic
psychographic
behaviouristic

Question 5

What are the demographic segmentation types?

Answer 5

life cycle
age
income
gender

Question 6

What are the behaviouristic grouping

Answer 6

user status
usage levels
different benefits

Question 7

What are the requirements for effective market segmentation

Answer 7

measurable
accessible
substantial
actionable
not already saturated

Question 8

What are the 3 factors to consider when evaluating market segments?

Answer 8

size and growth
structural attractiveness
org objectives and resources