Market Segmentation correct answers the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs
Ex: Senior citizen market or Hispanic market or College stude...
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Market Segmentation correct answers the process that companies use to divide large
heterogeneous markets into small markets that can be reached more efficiently and effectively
with products and services that match their unique needs
Ex: Senior citizen market or Hispanic market or College student market
What are the 4 bases for segmenting consumer markets? correct answers - Geographic
Segmentation
- Demographic Segmentation
- Psychographic Segmentation
- Behavioral Segmentation
Geographic Segmentation correct answers divides the market into different geographical units
such as nations, regions, states, counties, or cities
Ex: Hellman's mayonnaise on East coast, different name on West coast
Demographic Segmentation correct answers age, gender, family size, family life cycle, income,
occupation, education, religion, race, generation, and nationality
-> most popular segmentation method because consumer needs, wants, and usage often vary
closely with demographic variables and are easier to measure than other types of variables
Factors that affect demographic segmentation correct answers - Age & Lifecycle
- Gender
divides the market based on sex (male or female)
- Income
Age & Life Cycle correct answers is the process of offering different products or using different
marketing approaches for different age and life-cycle groups
Gender correct answers divides the market based on sex (male or female)
Income correct answers divides the market into affluent or low-income consumers
psychographic Segmentation correct answers divides buyers into different groups based on social
class, lifestyle, or personality traits
Behavioral Segmentation correct answers divides buyers into groups based on their knowledge,
attitudes, uses, or responses to a product
5 factors that affect Behavioral Segmentation correct answers - Occasion
- Benefits sought
- User status
, - Usage rate
- Loyalty Status
Occassion correct answers divides buyers into groups according to occasions when they get the
idea to buy, actually make purchases, or respond to a product
Ex: Orange juice
Benefits Sought correct answers requires finding the major benefits people look for in the
product class, the kinds of people who look for each benefit, and the major brands that deliver
each benefit
Ex: Toothpaste
User Status correct answers divides buyers into ex-users, potential users, first-time users, and
regular users of a product
Usae Rate correct answers divides buyers into light, medium, and heavy product users
Ex: cigarette smokers
Loyalty Status correct answers divides buyers into groups according to their degree of loyalty
Undifferentiated correct answers -Targets the whole market with one offer
-Mass marketing
-Focuses on common needs rather than what's different
Ex: Hershey bar
Differentiated correct answers -Targets several different market segments and designs separate
offers for each
-Goal is to achieve higher sales and stronger position
-More expensive than undifferentiated marketing
Ex: Hellman's mayonnaise
Concentrated correct answers -Targets a small share of a large market
-Limited company resources
-Knowledge of the market
-More effective and efficient
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