Chapter 2

Question 1

What is market segmentation
3 Different types of marketing Differentiation

Answer 1

• dividing market into smaller segments, with group potential customers with a similar demand, celebration of human diversity, tolerance, and freedom
  1) Undifferentiated (mass)
  2) Differentiated (satisfy whole market segment by seg)
  3) Concentrated Marketing (niche) choose segment

Question 2

4 Bases for segmentation (used to identify something else in common)

Answer 2

1) Geographic - where customers are
2) Demographics - what customers are
3) Psychographic - how customers think
4) Behavioural - how customers behave
- Geographic, demographic, psychographic and behavioural variables used bases for segmentation or profilers
- what product demand, where live, how much spend, where shop, media watch (likely)

Question 3

What is Georgraphic market segmentation & why use (bear ale)

Answer 3

• countries, climate, rural/urban areas, territories
  1) limited resources
  2) Obvious variations in demand seaside>brum
  3) Less obvious demand burried in history

Question 4

What is Demographic market segmentation

• Socio-economic class
• Geodemographcs

Answer 4

• age, education, gender, race, religion, nationality, occupation, income, life stage
  1) Often combined (18-24 female)
  2) Simple and advanced multivariate segmentation
  1) Poor guide to aspiration & potential ‘upward mobility’
  2) Poor guide to disposable income
  3) The basic ABC1C2DE system is occasionally modified to cope
  4) Classes are often grouped and used as broad indicators ‘ABC1’, ‘C2DE’
• form of demo market segmentation
• based premise profile people broadly be inferred by neighbourhood

Question 5

What is Psycographic market segmentation

Answer 5

• personality: self image, aspirations, fears, prejudices, sometimes social class described as one

Question 6

What is Behavioural Market Segmentation

Answer 6

• how people behave
  1) Benefits sought (efficient, lifespan, spair parts)
  2) User Status (Non-user, occasional, frequent, lapsed)
  3) Usage Rate (heavy, light)
  4) Loyalty Status (Hard core, Soft core, switcher)
  5) Use Occasion (When, where, how)
  6) Buyer Readiness Stage (Unaware, awareness, knowledge, liking, buying intention - hiarchy of effects model)