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Customer-Driven Marketing Strategy: Creating Value for Target Customers - Market Segmentation

13 important questions on Customer-Driven Marketing Strategy: Creating Value for Target Customers - Market Segmentation

In marketing, we distinguish segmenting for consumers, business markets and international markets. When talking about segmenting for consumers, we have nine options:
- Geographic
- Demographic
- Age and life-cycle
- Gender
- Income
- Psychographic
- Behavioral
- Occasion
- Benefit

Which of the above predicts the buyer's choice the most?

Behavior, followed by psychographic, geographic and the demographic.

Why do companies segment the market?

So, the target customers can be reached more efficiently and effectively with goods and services that match their unique needs.

Demographic segmentation is most popular. Why?

1. Consumer needs, wants and usage rates ofte vary closely with demographic variables.
2. Easier to measure.

The four types of segmentation are:

1. Consumer market segmentation
2. Business market segmentation
3. International market segmentation

What is hyper local social marketing and with which consumer segmentation strategy does it correspond?

Local social marketing is about location-based targeting to consumers in local communities using social media.

This corresponds with geographic segmentation.

What is geographic segmentation?

It is dividing the market based on country, region, state cities or neighborhoods.

In which four ways can international markets be segmented?

1. Geographical location; geographical segmentation assumes that countries who are close to each other have similar behavior.

2. Economic factors; a countries economic structure shapes its population product and service needs and therefore the marketing opportunities.

3. Political and legal factors;

4. Cultural factors

What is inter market segmentation (also called cross-market segmentation)?

This is segmentation of consumers who have similar needs and buying behavior, but are located in different countries.

What are the 5 characteristics of effective segmentation?

1. Measurability
2. Accessibility
3. Sustainability
4. Differentiability
5. Actionable

What is behavioral segmentation, and what sectors are there in this segment?

Behavioral segmentation is diving a market into segments based on consumer knowledge, attitudes, uses of a product, or response to a product.

-Occasions: when consumers get the idea to buy or actually make their purchase.
-Benefits sought: Refers to finding major benefits people look for in a product class.
-User status: Non-users, ex-users, potential users, and regular users.
-User rate: Licht, medium, or heavy. The heavy users are a low percentage, but make up a high percentage of total consumption.
-Loyalty status: consumers can be ranked on their degree of loyalty.

What is international market segmentation, and how can you segment the market?

Dividing the international market into segments that share similar needs and buying behaviors, even though they are in different countries.

1. Geographical
2. Economic
3. Cultural
4. Political
5. And other factors

What is Intermarket segmentation?

Through the growth of technology, marketers can now reach customers with similar needs all over the world using cross-market segmentation.

What are the requirements for effectively segmenting a market?

- Measurable: Refers to size, purchasing power, and profiles of the segments that can be measured.
- Accessible: The market segment has to be able to be effectively and efficiently reached.
- Substantial: Large and profitable enough to serve
- Differentiable: Segment is differentiable and will respond differently to different marketing mixes and programs.
- Actionable: Effective programs can be designed to attract and serve segments.

The question on the page originate from the summary of the following study material:

Principles of Marketing | 9780273786993 | Philip Kotler, et al

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