Five bases are commonly used for segmenting consumer markets.
Geographic segmentation is based on region, size, density, and climate characteristics.
Demographic segmentation is based on age, gender, income level, ethnicity, and family life cycle characteristics.
Psychographic segmentation includes personality, motives, and lifestyle characteristics.
Benefits sought is a type of segmentation that identifies customers according to the benefits they seek in a product.
Finally, usage segmentation divides a market by the amount of product purchased or consumed.
Positioning is used to influence consumer perceptions of a particular brand, product line, or organization in relation to competitors. The term position refers to the place that the offering occupies in consumers' minds. To establish a unique position, many firms use product differentiation, emphasizing the real or perceived differences between competing offerings.
Products may be differentiated on the basis of attribute, price and quality, use or application, product user, product class, competitor, or emotion. Some firms, instead of using product differentiation, position their products as being similar to competing products or brands. Sometimes products or companies are repositioned in order to sustain growth in slow markets or to correct positioning mistakes.
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Demographics
statistical data relating to the population and particular groups within it.
geographic segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
Cengage
Turn into question
1.Describe the characteristics of markets and market segments
//www.bartleby.com/solution-answer/chapter-8-problem-1lo-mktg-12student-ed-text-12th-edition/9781337407595/describe-the-characteristics-of-markets-and-market-segments/694d804a-7265-11e9-8385-02ee952b546e
refers to the different things to various people. There are various types of markets like stock market, super market, fish market, flea market and labor market. These markets will have their characteristics. The market is composed of consumer markets that is people and business market that is organization.
2.Explain the importance of market segmentation
Market segmentation is the practice of dividing up your company's audience into different groups with varying needs and interests. Market segmentation is important because it helps you understand the subgroups that make up your audience so you can tailor your products and your marketing.
3.Discuss the criteria for successful market segmentation
Successful market segmentation depends on four basic criteria: (1) a market segment must be substantial and have enough potential customers to be viable; (2) a market segment must be identifiable and measurable; (3) members of a market segment must be accessible to marketing efforts; and (4) a market segment must respond to particular marketing efforts in a way that distinguishes it from other segments.
4.Describe the bases commonly used to segment consumer markets
//www.yourarticlelibrary.com/marketing/market-segmentation/top-4-bases-for-segmenting-consumer-market/32293
//www.yourarticlelibrary.com/marketing/market-segmentation/top-4-bases-for-segmenting-consumer-market/32293#:~:text=%20Top%204%20Bases%20for%20Segmenting%20Consumer%20Market,Psychographic%20segmentation%20pertains%20to%20lifestyle%20and...%20More%20
Top 4 Bases for Segmenting Consumer Market
A. Demographic Segmentation:. Demographic segmentation divides the markets into groups based on variables such as age,...
B. Geographic Segmentation:. Geographic segmentation refers to dividing a market into different geographical units such...
C. Psychographic Segmentation:. Psychographic segmentation pertains to lifestyle and...
5.Describe the bases for segmenting business markets
//www.economicsdiscussion.net/market-segmentation/bases-of-market-segmentation/31458w
//blog.alexa.com/types-of-market-segmentation/
Market segmentation allows you to get to know your customers, identify what is needed in your market segment, and determine how you can best meet those needs with your product or service. This helps you design and execute better marketing strategies from top to bottom.
6.List the steps involved in segmenting markets
//www.chegg.com/homework-help/list-steps-involved-segmenting-markets-six-steps-involved-se-chapter-8-problem-6ra-solution-9781133171904-exc
1) selecting a market or product category for study;
2) choosing a basis or bases for segmenting the market; 3) selecting segmentation descriptors;
4) profiling and evaluating segments;
5)
selecting target markets; and
6) designing, implementing, and maintaining appropriate marketing mixes.
7.Discuss alternative strategies for selecting target markets
//www.chegg.com/homework-help/essentials-of-marketing-7th-edition-chapter-8-problem-7ra-solution-9780538478342?trackid=4d8636c27aaa&strackid=80843223e27f
Marketers select target markets using three different strategies: undifferentiated targeting, concentrated targeting, and multisegment targeting. An undifferentiated targeting strategy assumes that all members of a market have similar needs that can be met with a single marketing mix.
8.Explain how CRM can be used as a targeting tool
Companies that successfully implement CRM tend to customize the goods and services offered to their customers based on data generated through interactions between carefully defined groups of customers and the company.
9.Explain how and why firms implement positioning strategies and how product differentiation plays a role.
//www.chegg.com/homework-help/explain-firms-implement-positioning-strategies-product-diffe-chapter-8-problem-9ra-solution-9781133171904-exc#:~:text=Explain%20how%20and%20why%20firms%20implement%20positioning%20strategies,the%20real%20or%20perceived%20differences%20between%20competing%20offerings.
Positioning is used to influence consumer perceptions of a particular brand, product line, or organization in relation to competitors. The term position refers to the place that the offering occupies in consumers' minds. To establish a unique position, many firms use product differentiation, emphasizing the real or perceived differences between competing offerings.
The segment a company chooses to serve is called:
Target market
What does MARS stand for?
Measurable, accessible, responsive, substantial
What is another term for responsive, in the context of segmentation?
Actionable
Data from United States Census is an example of ___________ segmentation.
Demographic
Which of the following is not necessarily true about demographic data?
-Most widely used data
-It is a measurement of people
-Consumers in the same income group have similar demand patterns
-It does not always give a complete picture
Consumers in the same income group have similar demand patterns
Based on usage rate data, why do marketers want to target light users instead of heavy users?
Light users may have specific needs not met by the dominant players
What targeting strategy is the company using when deciding to go after the entire market with one product?
Undifferentiated targeting
A market that targets a relatively small and well-defined segment of the population is called a ___________.
Niche market
Which of the following is not valid for companies practicing multi-segment targeting?
-They try to cover most of the market with a variety of offerings
-They promote the same brand in different segments
-They are able to cover a bigger portion of the market
-They do not compete with their
brands
They promote the same brand in different segments
Groups of consumers who have differences in preferences are referred to as:
market segments
Age, income, gender, and ethnicity are common examples of variables in:
demographic segmentation
Which of the following types of segmentation is best defined by lifestyle, personality and motives for purchase?
Psychographic
The segment a company chooses to serve is called its:
target market
How brands are perceived in the minds of the consumers is called:
positioning
Nissan segments its market according to size, and offers cars of varying sizes like the Versa, Sentra, Altima, and Maxima. Other car companies like Toyota and Ford do the same. Which of the following best describes the above scenario?
a.
Undifferentiated targeting
b.
Niche targeting
c.
Multi-segment targeting
d.
Concentrated targeting
...
When segments are ignored and the company decides to chase the entire market, we call this
undifferentiated segmenting
When a company focuses all its efforts on a single segment, we call this:
concentrated targeting
When markets for a product are segmented based on what consumers are seeking from it, we call this:
concentrated targeting
A company has designed a product line specifically for left-handed people. However, there are hardly any magazines, TV channels, or retail outlets aimed at this segment. What challenge are marketers facing in this situation?
Accessibility
What market practice is roughly analogous to the military principle of " divide and conquer?"
Market segmentation
Choose a statement that is NOT correct about positioning.
a.
The act of designing the company's offering and image so that they occupy a meaningful and distinct position in the target customers' minds.
b.
It may sometimes require physical alteration to be effective.
c.
It is a way to make our products similar to those offered by competitors.
d.
Features of the product should be
congruent with the intended position of the product.
e.
The act of putting a product in the minds of the customers.
It is a way to make our products similar to those offered by competitors.
Some people drink Mountain Dew because they like its taste. Others drink it to help stay alert and awake. This suggests an opportunity to segment the market based on:
benefits sought
When does it make sense to segment a market?
When segments are homogenous within, heterogeneous between
Which of the following is most accurate about strategies for selecting appropriate segment(s)?
a.
For small firms, concentrated strategy makes sense as they can focus on a niche market with their limited resources.
b.
Multi-segment strategy
is always best for all the firms.
c.
Undifferentiated strategy is likely to lead to the most appealing product for customers.
d.
Large firms are likely to favor concentrated strategy.
e.
Multi-segment strategy usually reduces firms' profitability because increase in costs associated with modification of the products designed to target different segments more than offset the increases in sales.
...
Because "same store sales" stagnate, Wal-Mart started targeting at more affluent consumer groups by upgrading their product assortments (e.g., more fancy apparels and organic food). This effort is an example of:
a.
resegmenting
b.
repositioning
c.
perceptual mapping
d.
reimaging
e.
market segmentation
...
Which of the following is most accurate about strategies for selecting appropriate segment(s)?
a.
For small firms, concentrated strategy will be a safe way to go since there will be no competition.
b.
Undifferentiated strategy is likely to lead to the most appealing product for customers.
c.
Multi-segment strategy can be attractive to companies if core parts are same across products designed to target different segments.
d.
Multi-segment strategy is always best for all the firms.
e.
Large firms are
likely to favor concentrated strategy
Multi-segment strategy can be attractive to companies if core parts are same across products designed to target different segments.
Fresh Samantha, a producer and distributor of fresh Juice, decided to operate primarily in the Eastern coast. Its customers are mostly college students and young professionals that are creative, whimsical, and fun-seeking in nature. Fresh Samantha emphasizes that its products are nutritious, healthy food that needs to be refrigerated even when the products are delivered by truck to retail stores. Choose a segmentation base that is least applicable to their target market.
a.
behavioral pattern
b.
psychographic
c.
demographic
d.
geographic
e.
benefits sought
...
Choose a statement that is NOT correct about positioning.
a.
It is important to differentiate our products from those offered by competitors.
b.
It is something you do physically to a product.
c.
The act of putting a product in customers' minds.
d.
The act of designing the company's offering and image so that they occupy a meaningful and distinct competitive position in the target customers' minds.
e.
Features of the product should be congruent with the intended position of the product
...