Segmentation

Question 1

Market segmentation

Answer 1

dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviours that might require separate
marketing strategies or mixes.

Question 2

Market targeting (or targeting)

Answer 2

evaluating each market segment’s
attractiveness and selecting one or more market segments to enter.

Question 3

Positioning

Answer 3

arranging for a product to occupy a clear, distinctive, and desirable place
relative to competing products in the** minds of target consumers.**

Question 4

positioning starts with differentiation

Differentiation

Answer 4

differentiating the company’s market offering so that it gives consumers more value.

Question 5

4 bases of consumer segmentation

Answer 5

1. geographic
2. demographic
3. psychological
4. behaviorial

Question 6

4 additional groups Segment business markets

Answer 6

• similar to consumer
  but also
• customer operating characteristics
• purchasing approaches
• situational factors
• personal characteristics

Question 7

Companies can segment international markets using one or a combination of: 4

Answer 7

1. Geographic factors: Nations close to one another will have many common traits
   and behaviours.
2. Economic factors: Countries may be grouped by population income levels or by
   their overall level of economic development.
3. Political and legal factors: Type and stability of government, receptivity to foreign
   firms, monetary regulations, and the amount of bureaucracy.
4. Cultural factors: Grouping markets according to common languages, religions,
   values and attitudes, customs, and behavioural patterns.

Question 8

MASDA

5 requirements for effective segmentation

Answer 8

Measurable
Accesible
Substantial
Differentiable
Actionable

Question 9

Choosing a differentiation and positioning strategy consists of three steps:

Answer 9

1. Identifying a set of **differentiating competitive advantages **upon which to build a
   position
2. Choosing the** right competitive advantages**
3. Selecting an overall positioning strategy

Question 10

Which Differences to Promote? 7 characteristics

Answer 10

• Important (valued benefit)
• Distinctive
• Superior
• Communicable
• Pre-emptive (not easily copy)
• Affordable
• Profitable

Question 11

The full positioning of a brand is called the

brand’s value proposition.

5 brand value proposition

Answer 11

1. More for more: High quality, high price
2. More for the same: comparable quality, lower price
3. The same for less: good deal
4. Less for much less: cheap
5. More for less: winning value proposition