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Description
Flashcards by IngIng Hon, updated more than 1 year ago
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Created by IngIng Hon
over 9 years ago
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| Question | Answer |
| Market Segmentation | It is the process of dividing a market into distinct subsets of consumers with common needs and selecting one or more to target with a distinct marketing strategy. Many people develop same or similar biological or acquired needs, allowing for targeting and positioning |
| Criteria for Effective Targeting of Market Segments (Basis for Segmentation) | Not every segment that can be identified is viable or profitable. Hence to be an effective target, a market segment should be: 1. Identifiable 2. Sizeable 3. Stable 4. Accessible 5. Congruent with the marketer's objectives and resources |
| Criteria for Effective Targeting: Identification | Marketers must be able to identify and measure the relevant common need or characteristic such as geography, demographics, education, marital status, and lifestyle |
| Criteria for Effective Targeting: Sufficiency (sizeable) | A market segment must have a sufficient number of people to be profitable in terms of warrant tailoring a product or promotional campaign to its specific needs or interests |
| Criteria for Effective Targeting: Stability | Segments need to be stable in terms of needs, demographic and psychological factors, and are likely to grow over time. Marketers should avoid fickle segments that are unpredictable in embracing fads as trends will not last |
| Criteria for Effective Targeting: Accessibility | Marketers must be able to reach the target segments in an economical way |
| Criteria for Effective Targeting: Congruent with the Company's Objectives and Resources | Target segment must be align with company's objectives and resources. Eg, Jetstar offers only one class of service because its objective is to provide uniform, inexpensive and no-frills air transportation |
| Bases for Segmentation | Consumer-rooted/Facts: Demographics, geographic Consumer-rooted/Cognitive: Personality, Lifestyle, Values and Beliefs Consumption-Specific/Facts: Usage and Purchase behaviour (usage rate, situation & psychographic eg hobbies) Consumption-Specific/Cognitions: Attitudes and Preference (eg benefits wanted, level of involvement, awareness) |
| Segmentation Strategies | Behavioural Targeting: describe segment based on usage behaviour Microtargeting (direct marketing): Use of hybrid segmentation to narrow segmentation Countersegmentation: Used when segments display signs of converging to combine the segments into one to discover generic needs Concentrated Marketing: Target one segment with a unique marketing mix (one product for one segment) Differentiated Marketing: Targeting several segments with one product using individualized marketing mixes |
| Types of Segmentation | Geographic Segmentation Demographic Segmentation Psychographic Segmentation Sociocultural Segmentation User-related Segmentation User-situation Segmentation Benefit Segmentation Hybrid Segmentation: (Demographic/Psychographic Segmentation, Geodemographic Segmentation, VALs: values and lifestyle) |
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