Chapter 6 - Segmentation Flashcards
What is a market segment?
A group of present of potential customers with some common characteristics.
Thanks to this common characteristics we can try to predict their reactions when subjected to some marketing stimuli
What is market segmentation?
Is the process of dividing the market into meaningful segments
What are segmentation bases and which?
Are some variables that help in segmenting the market that go from a macro perspective to a micro perspective. They are:
- Firmographics
- Operating variables
- Purchasing approach
- Situational factors
- Personal characteristics
Which are the “firmographics” variables?
- Industry
- Customer size
- Customer location
Which are the “operating variables” variables?
- Company technology
- Product and brand use status
- Customer capabilities
- Customer strategic type
Which are the “purchasing approach” variables?
- Power structures
- Purchasing function organization
- Purchasing general policies
- Purchasing criteria
- Buyer-seller relationship
Which are the “situational factors” variables?
- Urgency of needs
- Scale of needs
Which are the “personal characteristics” variables?
- Buyer’s risk
- Buyer’s lifestyle
- Buyer’s world view
- Buyer’s motivation
- Buyer’s personality
What key criteria best define a market segment?
- Measurability
- Accessibility
- Substantiality
- Actionable
What does “Targeting” mean?
Making choices about those segments that should be pursued and devise strategies to pursue them
Which are the variables to estimate the attractiveness of a target?
- Segment size
- Segment growth rate
- How bodies like governments, institutions, … affects the segment
- How technology impacts the segment
- How relationships affect or can be affected by the segment
- The nature of competition in that segment
Which are the main targeting strategies?
- Undifferentiated targeting
- Differentiated targeting
- Niche targeting
