Segmentation

Question 1

market segmentation

Answer 1

process of dividing a market into distinctt groups oof buyers with similar requirements

Question 2

market segment

Answer 2

a homoogenous group of customers with similar needs, wants, values and customer buying behaviur

Question 3

positioning

Answer 3

creating an image, reputation or perception in the minds of consumers about the rganisation or its products

Question 4

pitfalls with segmenation

Answer 4

1. it is descriptive not predictive
2. assumes homogenity
3. assumes compettition-free segmens
4. may define the wrong segment

Question 5

segmentation is descriptive not predictive elaboration

Answer 5

a description of a market that already exists is useless to making a decision about ftuture events

Question 6

segmentation assumes homogeneity elaboration

Answer 6

it assumes customers are not different and can be averaged

Question 7

segmentation may define the wrong segmentt elaboration

Answer 7

may exclude significant numbers of real prospects and include significant numbers of non-prrospects

Question 8

factors favouring market segmentation

Answer 8

1. better strrattegic allocation of marketing resources
2. ceation of more effecttive marketing programmes
3. better opportunities for new product or market development

Question 9

factors discouraging market segmentation

Answer 9

1. heavy users make up such a large proporttion of sales that they are tthe only relaventt target
2. the market is so small that marketing to a portion of it is no tprrofitable

Question 10

requirements for effective segmentation

Answer 10

1. adequate size market
2. measurability
3. accesability
4. responsiveness
5. compatibility

Question 11

measurability

Answer 11

whether or nott enough info can be obtained from the buyers

Question 12

accessability

Answer 12

evaluating the degree to which the firms can focus on its marrketting effors on chosen segments

Question 13

responsiveness

Answer 13

how segments respond to different marketing mix elements

Question 14

what ways do marketers segment consumer markets

Answer 14

1. demographics
2. psychographics
3. behaviour
4. benefits soughtt

Question 15

demographics

Answer 15

1. age
2. sex
3. lcattion
4. income
5. occupation

Question 16

psychographics

Answer 16

lifestyle or personality

Question 17

bases for segmenting busineess makets

Answer 17

1. industry
2. organisational charactteristics
3. product applicattion
4. situational factors
5. individual variables

Question 18

target marketing

Answer 18

tthe process of selecting one or more of thtese marketting segments and developing products and programmes thtat ae tailred frr each segment

Question 19

mass marketing characteristtics

Answer 19

company treats all custtomers the same

Question 20

why do cmpanys employ mass marketing

Answer 20

so they can streamline their product process

Question 21

mass marketing limitations

Answer 21

1. standardised products may fail to meet individual customer needs
2. requires substantial resources

Question 22

differentiated marketing

Answer 22

serves each segment with the marketing mix matched specifically too its desires and expectations

Question 23

differentiated marketing benefits

Answer 23

wants and needs are satisfied better

Question 24

differentiatted marketing limitations

Answer 24

may cost more because several marketing mix strattegies are required

Question 25

niche market

Answer 25

serving one or more segments that consist of substantial numbers of custtomers seeking somewhatt specialised benefits from a supplier

Question 26

broad steps to segmentation

Answer 26

1. defining the market 2. segmenting 3. targeting 4. positioning

Question 27

targeting factors to consider

Answer 27

1. segment size and growth 2. segment structural attractiveness 3. company objectives and resources