Marketing - Consumer and Business Markets Segmentation
In psychographic segmentation, what are the six social classes?
A upper class, B middle class, C1 lower middle class, C2 skilled working class, D working class, E low income earners
What three things are needed to know in personal characteristics segmentation of the business market?
Buyer seller similarities, attitudes on risk, loyalty
Why is market segmentation important?
Can develop marketing strategies to target a product and attract consumers narrowed down
Name the five segmentation criteria of the business market
Demographic, operating variables, purchasing approaches, situational factors, personal characteristics
What is segment profiling?
Detailed description of the market segment across a range of factors
What is meant by a differentiable market segment?
Distinguishable and respond differently to different marketing mixes
Age and life cycle stage demographic segmentation =
Divides market into different age and life cycle groups
Culture demographic segmentation =
Divides market into different cultural heritage groups with same values, beliefs and customs
Gender demographic segmentation =
Divides market into different gender groups
Income demographic segmentation =
Divides market into different income groups
What is demographic segmentation in the consumer market?
Divides market into segments based on age, life cycle stage, gender, income, occupation, education, religion, ethnicity and generation
What is behavioural segmentation in the consumer market?
Divides market into segments based on consumer knowledge, attitudes, uses of and responses to a product
What is psychographic segmentation in the consumer market?
Divides market into segments based on social class, lifestyle and personality characteristics
Subculture demographic segmentation =
Divides market into those united by experience, value or beliefs
What is multivariate segmentation in the consumer market?
Divides market to identify smaller, better defined target groups
What is geographic segmentation in the consumer market?
Divides the market into different geographical units such as nations, regions, states, countries, cities and neighbourhoods
What is meant by an actionable market segment?
Effective program can be designed to attract and serve customers
What is meant by an accessible market segment?
Effectively reached and served
Give an example of multivariate segmentation in the consumer market
Geodemographic segmentation on the basis that those who live in certain areas have similar characteristics
Name the five segmentation criteria for the consumer market
Geographic, demographic, psychographic, behavioural, multivariate
Name the four segmentation criteria of the international market
Geographic, economic, political and legal, social and cultural
What is social and cultural segmentation of the international market?
Grouping countries by lifestyle, language and religion
What is economic segmentation of the international market?
Grouping countries by population income
What is geographical segmentation of the international market?
Grouping countries by region
What is political and legal segmentation of the international market?
Grouping countries by stability of governments and regulations
In culture demographic segmentation, what are biculturals?
High affiliation with host culture, high desire to maintain home culture
In culture demographic segmentation, what are assimilators?
High affiliation with host culture, low desire to maintain home culture
Biculturals prefer
Home country products
Ethnic affirmers prefer
Home country products
Assimilators prefer
Host country products
What two things must be considered when segmenting the market?
Is there a new segment, is there a gap in the new segment identified
What is meant by a substantial market segment?
Large and profitable enough to serve
In culture demographic segmentation, what are ethnic affirmers?
Low affiliation with host culture, high desire to maintain home culture
In culture demographic segmentation, what are marginals?
Low affiliation with host culture, low desire to maintain home culture
What are the five categories needed for a market segment to be useful?
Measurable, substantial, accessible, differentiable, actionable
What three things are needed to know in purchasing approaches segmentation of the business market?
Nature of existing relationship with firm, general purchasing policies such as leases or contracts, purchasing criteria such as quality or price
In behavioural segmentation, the type of benefit sought in a product depends on
Needs and the need to satisfy them
Marginals prefer
Neither home or host country products
Give four advantages of using geographic segmentation
New ways to generate sales in sluggish and competitive markets, allows assessment of best selling brands in region, regional brands appeal to local preferences, quicker reaction to competition
What is the stage after the markets are segmented?
Profiling
Why is segment profiling important?
Provides firms with an understanding of consumers within each segment to evaluate segment attractiveness and marketing strategies
What are the four parts of the geographic segmentation base?
Region of country or world, market size, market density, climate
What are the four elements of a consumer driven marketing strategy?
Segmentation, targeting, differentiation, positioning
What is international market segmentation?
Segmenting consumers who have similar needs and buying behaviours despite being located in different countries
What is meant by a measurable market segment?
Size, purchasing power, growth and profiles can be measured
What is market segmentation?
The division of the market into groups who respond to similar marketing efforts based on needs, wants, behaviours and characteristics
What three things are needed to know in situational factors segmentation of the business market?
Urgency of service, whether to focus on certain characteristics of products, size of order
What three things are needed to know in operating variables segmentation of the business market?
What customer technology to focus on, user or non user statuses, whether to serve customers needing many or few services
Give four examples of what would be considered in a segment profile
What product they demand, where they live, how much they would spend, where and how they shop
What three things are needed to know in demographic segmentation of the business market?
Which industry to focus on, size of firm to serve, what area to serve