What is segmentation?
It is a marketing strategy that consists of dividing the market into submarkets, that is, homogeneous groups of consumers, users, or customers who have similar needs and behave in the same way; however, each group is different from the others.
What are the 8 variables of the segmentation of the consumer market? What are their types?
- Sociodemographic variable (Descriptive)
- Geographic variable (Descriptive)
- Psychographic variable (Descriptive)
- Lifestyles variable (Descriptive)
- Behavioural variable (Benefits sought)
- Volume and profitability variable (Descriptive or benefits sought)
- Market variable (Descriptive or benefits sought)
- Combination of variables (Descriptive or benefits sought)
Describe the sociodemographic variable.
It can be income, age, education, net worth, gender, ethnic origin, religion, language, occupation, marital status, and family structure.
Describe the geographic variable for consumers.
It can be regions of the world, countries, neighborhoods, postal codes, climates, and types of physical environments.
Describe the psychographic variable.
It can be consumer mindsets, values, opinions, interest in various activities, and attitudes toward life.
Describe lifestyles variable.
They are a combination of the 3 preceding categories (sociodemographic, geographic, and psychographic).
Describe the behavioral variable.
They are needs, expectations, situations, and usage.
Describe the volume and profitability variable for consumers.
It is sales volume and profit amount.
Describe the market variable for consumers.
It is consumers and variables specific to a market.
Describe the combination of variables.
It is a combination of 2 or more of the preceding seven categories.
In which way is business market segmentation different from that of the consumer?
They will take different variables into consideration.
What are the 6 variables of the business market segmentation? What is the type of each variable?
- Economic (Descriptive)
- Geographic (Descriptive)
- Organizational culture, procurement policy (Descriptive)
- Behavioural (Benefits sought)
- Volume and profitability (descriptive or benefits sought)
- Market variable (descriptive or benefits sought)
Describe the economic variable.
It is the company’s size, financial soundness, and growth.
Describe the geographic variable for businesses.
It can be regions, countries, and types of physical environments.
Describe the organizational culture and procurement policy.
It is the purchasing process, and types of relationships desired.
Describe the volume and profitability variable for businesses.
It is the purchase volume.
Describe the market variable for businesses.
They are the types of companies or industries.
What is targeting?
It is a marketing strategy that selects segments, markets, or customers that a business wants to win over and retain.
What are the targeting components to reach profitability in a market segment?
- Size
- Growth
- Accessibility
- Competitive situation
- Adaption cost
What are the 4 types of targeting?
- Mass marketing
- Segment marketing
- Niche marketing
- Personalized marketing
Describe mass marketing.
It is the same marketing mix for the entire target market.
Describe the segment marketing.
It is a marketing mix adapted to each target segment which and apply to:
- one or two segments (concentrated segment marketing).
- all or almost all segments (comprehensive segment marketing).
- some of them (broad segment marketing).
Describe the niche marketing.
It is a single marketing mix thoroughly adapted to a single small segment.
Describe personalized marketing.
It is adapting the marketing mix to each customer.
