Segmentation & Targeting

Question 1

Segmentation

Answer 1

The division of the marketplace into distinct subsets of consumers having similar needs and wants. It abstracts within-segement differences.

Question 2

Behavioral

Answer 2

Purchase history; Website behavior; Engagement with marketing campaigns; Customer feedback.
=> Highest predictive power; Lowest identifiability for new customers.

Question 3

Psychographics

Answer 3

Lifestyle; Personal Values

Question 4

Segment Prediction

Answer 4

Using current customers (Behavior as a function of Demographic & Psychographic data) to predict new ones.

Question 5

Correlated Spatial Preferences

Answer 5

Refer to the tendency for individuals living in close proximity to share similar preferences for goods, services, or activities.

Question 6

Desirable Properties of Segments

Answer 6

Large
Identifiable
Distinct
Stable

Question 7

Targeting

Answer 7

A process following segmentation which involves determining which targets to serve and which segments to ignore.

Question 8

Desirable Properties of Targets

Answer 8

Potential
Fit
Defensibility

Question 9

How did Calyx Decide on its Targets?

Answer 9

Segmenting their own customers using Need-Based Segmentation and determining their different priorities.

Question 10

Optimal Value Proposition (OVP)

Answer 10

The intersection between customer needs and company value.

Question 11

Need-Based Segmentation Steps

Answer 11

1- Identify need based segments
2- Identify competitive offering
3- Determine which segments to target
4- Link identifiable characteristics for marketing com and distribution

Question 12

Need-Based Segmentation: Pros & Cons

Answer 12

(-)Can have higher acquisition costs
(+) Higher acquisition returns

Question 13

Sustainability of Value Proposition

Answer 13

Involves asking the question of whether the differentiation factors are easily thwarted by competition.