Chapter 6 - Segmentation

Question 1

What is a market segment?

Answer 1

A group of present of potential customers with some common characteristics.
Thanks to this common characteristics we can try to predict their reactions when subjected to some marketing stimuli

Question 2

What is market segmentation?

Answer 2

Is the process of dividing the market into meaningful segments

Question 3

What are segmentation bases and which?

Answer 3

Are some variables that help in segmenting the market that go from a macro perspective to a micro perspective. They are:

1. Firmographics
2. Operating variables
3. Purchasing approach
4. Situational factors
5. Personal characteristics

Question 4

Which are the “firmographics” variables?

Answer 4

1. Industry
2. Customer size
3. Customer location

Question 5

Which are the “operating variables” variables?

Answer 5

1. Company technology
2. Product and brand use status
3. Customer capabilities
4. Customer strategic type

Question 6

Which are the “purchasing approach” variables?

Answer 6

1. Power structures
2. Purchasing function organization
3. Purchasing general policies
4. Purchasing criteria
5. Buyer-seller relationship

Question 7

Which are the “situational factors” variables?

Answer 7

1. Urgency of needs
2. Scale of needs

Question 8

Which are the “personal characteristics” variables?

Answer 8

1. Buyer’s risk
2. Buyer’s lifestyle
3. Buyer’s world view
4. Buyer’s motivation
5. Buyer’s personality

Question 9

What key criteria best define a market segment?

Answer 9

1. Measurability
2. Accessibility
3. Substantiality
4. Actionable

Question 10

What does “Targeting” mean?

Answer 10

Making choices about those segments that should be pursued and devise strategies to pursue them

Question 11

Which are the variables to estimate the attractiveness of a target?

Answer 11

1. Segment size
2. Segment growth rate
3. How bodies like governments, institutions, … affects the segment
4. How technology impacts the segment
5. How relationships affect or can be affected by the segment
6. The nature of competition in that segment

Question 12

Which are the main targeting strategies?

Answer 12

1. Undifferentiated targeting
2. Differentiated targeting
3. Niche targeting