MBA 706 Exam 2 Koksal
What is market segmentation?
The process of dividing consumers into groups with similar wants and needs.
What are the three types of marketing approaches?
Undifferentiated marketing
differentiated marketing
concentrated marketing
undifferentiated marketing
Targeting all consumers with a single offering.
Example: Henry Ford's Model T
Advantages in undifferentiated marketing
Offers cost advantages and is becoming increasingly rare in modern markets.
differentiated marketing
Targeting different segments using different marketing mixes.
Example: Coca-Cola's shift from a single drink to various tastes and containers
concentrated marketing
,Targeting a single segment.
Example: Steinway's concentration on the concert and professional pianist market.
What are the criteria for a market segment?
Measurable, accessible, substantial, unique, appropriate, and stable.
What does it mean for a market segment to be measurable?
Data should be available to evaluate the attractiveness of segmentation.
What does it mean for a market segment to be accessible?
The segment ought to be easily understood and manageable for the company.
What does it mean for a market segment to be substantial?
The segment should be large and valuable.
What does it mean for a market segment to be unique?
The segment should be distinguishable from other segments.
What does it mean for a market segment to be appropriate?
The characteristics of the segment should not contradict the resources or objectives of the company.
What does it mean for a market segment to be stable?
, The company should be able to predict the behavior of the segment in the future.
What is geographic segmentation?
Dividing markets into groups based on geography.
What is geodemographic segmentation?
Combining geographic and demographic factors to divide markets.
purpose of geodemographic segmenting
provide the base for targeting customers in particular areas who exhibit similar behaviour patterns.
What is demographic segmentation?
Dividing markets into groups using demographic variables such as age, sex, income, etc.
Behavioral Segmentation
Dividing markets into groups based on behavioral measures such as attitudes, knowledge, loyalty, etc.
benefit segmentation
Segmenting consumers based on the benefits they seek.
Example: A shoe manufacturer may segment its market as those who seek style and those who seek quality.
user status segmentation
What is market segmentation?
The process of dividing consumers into groups with similar wants and needs.
What are the three types of marketing approaches?
Undifferentiated marketing
differentiated marketing
concentrated marketing
undifferentiated marketing
Targeting all consumers with a single offering.
Example: Henry Ford's Model T
Advantages in undifferentiated marketing
Offers cost advantages and is becoming increasingly rare in modern markets.
differentiated marketing
Targeting different segments using different marketing mixes.
Example: Coca-Cola's shift from a single drink to various tastes and containers
concentrated marketing
,Targeting a single segment.
Example: Steinway's concentration on the concert and professional pianist market.
What are the criteria for a market segment?
Measurable, accessible, substantial, unique, appropriate, and stable.
What does it mean for a market segment to be measurable?
Data should be available to evaluate the attractiveness of segmentation.
What does it mean for a market segment to be accessible?
The segment ought to be easily understood and manageable for the company.
What does it mean for a market segment to be substantial?
The segment should be large and valuable.
What does it mean for a market segment to be unique?
The segment should be distinguishable from other segments.
What does it mean for a market segment to be appropriate?
The characteristics of the segment should not contradict the resources or objectives of the company.
What does it mean for a market segment to be stable?
, The company should be able to predict the behavior of the segment in the future.
What is geographic segmentation?
Dividing markets into groups based on geography.
What is geodemographic segmentation?
Combining geographic and demographic factors to divide markets.
purpose of geodemographic segmenting
provide the base for targeting customers in particular areas who exhibit similar behaviour patterns.
What is demographic segmentation?
Dividing markets into groups using demographic variables such as age, sex, income, etc.
Behavioral Segmentation
Dividing markets into groups based on behavioral measures such as attitudes, knowledge, loyalty, etc.
benefit segmentation
Segmenting consumers based on the benefits they seek.
Example: A shoe manufacturer may segment its market as those who seek style and those who seek quality.
user status segmentation
