Week 5

Question 1

What is market?

Answer 1

• A group of people, who have needs for products and have the ability, willingness, and authority to purchase them

Question 2

What is target market?

Answer 2

• The market in which the organisation decides to serve

Question 3

What is a market segment?

Answer 3

• Individuals with one or more similar characteristics that cause them to have similar product needs

Question 4

What is market segmentation?

Answer 4

• The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs
• Appropriate for heterogenous markets where there are diverse needs and wants for products

Question 5

What are the three targeting strategies commonly used by marketers?

Answer 5

• Undifferentiated Strategy → Organisation designs a single marketing mix and directs it at the entire market
• Concentrated Strategy → Organisation designs a single marketing mix and directs it at a single market segment
• Differentiated Strategy → Organisation targets two or more segments by developing a marketing mix for each

Question 6

What are segmentation variables and what are the different types?

Answer 6

• Characteristics of individuals, groups or organisations used to divide a market into segments
• Geographic
• Demographic
• Psychographic
• Behaviouristic

Question 7

What is product positioning?

Answer 7

• Creating and maintaining a certain concept of a product in a customer’s mind

Question 8

What are the bases for positioning?

Answer 8

• Product feature (unique attributes)
• Product benefits/advantages
• Competitors

Question 9

What is perceptual mapping?

Answer 9

• A tool to visualise consumer’s perceptions of their brand compared to competitors on important buying dimesions