Week 8 - Market Segmentation, targeting and Positioning

Question 1

Market Segments

Answer 1

Market Segments are part of a market that contains a group of buyers with similar buying habits

Question 2

What is the target market?

Answer 2

The market segment at which a business aims its products is called its target market.

Question 3

What are segments?

Answer 3

Businesses divide their markets into smaller groups called
segments

Question 4

How are markets segmented?

Answer 4

1.Age
2.Gender
3.Income
4.Area
5.Ethnicity and cultural
6.Religion
7.Socio-economic group
8.Geographical/Location
9.Lifestyle

Question 5

What is geographic segmentation?

Answer 5

Geographic segmentation means dividing the market into different geographic units such as nations, regions, states, counties, cities or neighbourhoods

Question 6

What is demographic segmentation

Answer 6

Demographic segmentation means dividing the market into groups based on variables

Question 7

What is geodemographic segmentation

Answer 7

A way of classifying consumers according to geographic and demographic characteristics

Question 8

What is Psychographic Segmentation

Answer 8

Psychographic segmentation means dividing the market into groups based on social class, lifestyle or personality characteristics

Question 9

What is behavioural segmentation

Answer 9

Behavioural segmentation means dividing the market into groups based on their attitudes to a market

Question 10

What is market targeting

Answer 10

Market targeting involves evaluating the various segments identified during the segmentation process and deciding which segments it can serve best.

Question 11

What is Buyer Persona/Customer Profile

Answer 11

• It is an avatar that represents the real people who buy, or might buy, products that you sell (Revella, 2015)
• Helps businesses to better target their products to a particular audience
• Enables for more personalised marketing as individuals feel it is about them

Question 12

What is positioning statement?

Answer 12

• A statement that summarises company or brand positioning
•It helps consumers to remember the brand by creating an image of the brand using their own perceptions (Lewis, 1981)
•Businesses think carefully about the phrasing they use in their adverts to reflect the brand they are building

Question 13

What is Market/Perceptual Mapping

Answer 13

This shows how your business compares with rivals in two key product features (Hauser & Koppelman, 1979)
• Market mapping lets you identify where the product or service is best placed in the market to suit potential customer needs
• It helps identify any gaps in the market – where there are customer needs that are not being met currently.