SEGMENTATION + TARGETING + POSITIONING

Question 1

What is a market segment?

Answer 1

A sub group of consumers with simmilar characteristics in a given market

Question 2

What is market segmentation?

Answer 2

The process of dividing the market into smaller or distinct groups of consumers in order to meet their needs and wants

Question 3

Ways to segment the market

Answer 3

• Demographic: According to the varying characteristics of the population. (Age, Gender, Religion etc)
• Geographic: According to deifferent geographical sectors (different countries or rural/urban)
• Phsychographic segmentation: Accoridng to lifestyle or personality (socioeconomic status or values)

Question 4

Advanatges of Segmentation

Answer 4

• Helps identify existing gaps and new opportunities
• Designing for a specific group increases sales and profitability
• Minimizes the waste of resources through identifying the right customers

Question 5

Limitation of segmentation

Answer 5

It can be expensive, speciallly if the firm is studying a large segment

Question 6

What is a target market?

Answer 6

A group of consumers with common needs or wants that a business sells or serves to.

Question 7

What is targeting?

Answer 7

The process of marketing to a specific market segment

Question 8

Mass Marketing

Answer 8

• Firm ignores the specific market segments and targets the entire market
• Business considers the common needs and wants
• Aims to sell to many customers to maximize their sales

Question 9

Segmented Marketing

Answer 9

• Tragets several segments + develops appropriate marketing mixes for each of these segments
• Firms can gain a stringer position in each segment. This increases sales and market share.

Question 10

Niche Marketing

Answer 10

• Appeals to smaller and more specific market segments
• Good startegy for smaller firms that have limited resources
• Few competitors
• Take advantage of opportunities that have been overlooked by larger firms
• Enables businesses to make their products more efficiently and effectively

Question 11

Consumer Profile

Answer 11

Understanding consume profile is key to effective targeting.
Consumer profile is the characteristics of consumers of a particular product in different markets based on their gender, age, income level among other characteristics.

Question 12

Positioning

Answer 12

Product positioning involves analyzing how consumers define or percieve a product compared to other products in the market.
Marketers have to plan positions that will give them competitive advatages.

Question 13

Importance of a position map

Answer 13

• Helps establish competitors or threats
• Identify important gaps or opportunities
• Simple and quick way of representing data
• Helps firms target specific segments