Segmenting/Targeting

Question 1

Segmentation: dividing the market based on consumer characteristics

Answer 1

Demographic (what)
-age, gender, income, education, religion, occupation, family size
Psychographic (why)
-lifestyle, personality, social class
Geographic 
-nations, states, neighborhoods
Behavioral
-use, loyalty, rates, occasions of use, knife, different benefits

Question 2

Segmentation process is meant to reduce complexity across consumers, formulate strategy

Answer 2

Mass to segment to niche to individual
Mass: undifferentiated, increase competition
Segment: differentiated, competitors and differentiating
Niche market: concentration
Information revolution and Internet marketing lead to individual
Individual: micro market (stores near offices), mass customization, market of one

Question 3

Targeting: evaluating the attractiveness of a segment, select one or more to enter. The goal is to maximize the effectiveness of the money.

Answer 3

Differentiation: creating superior customer value
Positioning: position offering in minds of target customers

Question 4

CRM and customer behavior

Answer 4

Loyalists
-Emotive (my brand), inertial (change isn’t worth it), deliberate (reaffirm, reassess frequently)
Downward migrators
-lifestyle (chance in needs), deliberative (reaffirm and reassess frequently), dissatisfied (actively reevaluate)