Target markets and segmenting markets- pages 10-13

Question 1

How do enterprises choose the most suitable promotional mix?

Answer 1

It is based on whether they are targeting a business to business (B2B) market or business to consumer market (B2C).

Question 2

What is a B2B market?

Answer 2

An enteprises sells its goods to another enterprise. The goods may be raw materials, equipment or items for resale

Question 3

What is a B2C market?

Answer 3

An enterprise sells its products- goods/services directly to customers at their business

Question 4

Name a method of promotion in B2B markets…

Answer 4

B2B enterprises generally consist of large companies, Enterprises may use expensive methods of promotion such as advertising nationally- direct marketing or personal selling

Question 5

Name a method of promotion in B2C markets…

Answer 5

B2C markets, target individual consumers using promotional methods such as money-off vouchers, discounts and loyalty incentives- advertising, sales promotion and public relations

Question 6

Name a example of a B2C

Answer 6

When you buy a new phone/chocolate bar or anything for yourself

Question 7

What is a target market?

Answer 7

A particular group of consumers at which a product or service is aimed

Question 8

Market segmentation definition

Answer 8

This is where a market can be divided into different sections or different segment for various reasons

Question 9

What is a segment made up of?

Answer 9

Customers who have similar characteristics and needs

Question 10

Why do enterprises segment the market?

Answer 10

• To better understand the characteristics and needs of the customers better
• To develop products that suit the needs of different market segments

Question 11

Name the four ways in which a business can segment the market…

Answer 11

• Demographic
• Geographic
• Psychographic
• Behavioral

Question 12

Demographic segmentation

Answer 12

Covers various characteristics of consumers age, gender, family size, ethnicity/race, religious and cultural beliefs, income and education level

Question 13

Geographic segmentation

Answer 13

Different needs based on where you live

Question 14

Psychographic segmentation

Answer 14

Grouping according to social class, attitudes, lifestyle and personality

Question 15

Behavioral segmentation

Answer 15

Based on how people relate to the product, including consumer spending choices and how often customers buy products (usage rate)

Question 16

List the types of demographic

Answer 16

age, gender, family size, ethnicity/race, religious and cultural beliefs, income, socio-economic group and education level

Question 17

Gender meaning in demographic

Answer 17

Men and women have different tastes, interests and needs

Question 18

Income meaning in demographic

Answer 18

People with higher income may have money to spend on luxury brands, such as designer clothing

Question 19

Education level meaning in demographic

Answer 19

People with a higher education may earn more and spend their extra income

Question 20

Socio-economic meaning in demographic

Answer 20

People’s social class is based on their income and type of occupation

Question 21

Ethnicity/race meaning in demographic

Answer 21

These may influence people’s choice of food, clothing and cultural preferences. Some food companies may target their products at specific communities

Question 22

Family size meaning in demographic

Answer 22

Larger families usually buy products such as food and washing powder in bigger quantities

Question 23

Age meaning in demographic

Answer 23

People’s tastes, interests and needs may change at different life stages

Question 24

Geographic example

Answer 24

Where people live influcences the products they buy, for example people living in cold climates will need different types of clothing compared to people living in hot climates

Question 25

What are the consumers in psychographic segmentation mainly segmented into?

Answer 25

• Personality
• Likes and dislikes
• Values
• Lifestyle
• Attitudes
• Interests

Question 26

Spending and consumption in behavioral segmentation

Answer 26

Enterprises will need to take into account how much money customers have available to spend. This can be affected by how well the country’s economy is doing.

Question 27

Usage rate in behavioral segmentation

Answer 27

This measures how regularly customers buy products

Question 28

Loyalty in behavioral segmentation

Answer 28

To encourage customers to keep buying their products. an example would be loyalty cards

Question 29

Desired benefits in behavioral segmentation

Answer 29

Products have features that provide benefits to customers or meet their needs, for example electronic cars for environmentally drivers