ENT - CP3 - Quiz 8 - Market Segmentation

Market Segmentation is a process of...

• Dividing the market of potential customers into different groups and segments based on certain characteristics

• Putting people into segments

• Using customer information to get profit

Customers have different disposable incomes and vary in there willingness to spend. Setting the right price encourages customers to purchase the product - links to which benefit

• Customer needs are met

• Customer Retention

• Increase in sales and profits

An example of Demographic segmentation would be

• cities vs. towns

• age

• playing sports

• how often you buy a product

Advertising snow shovels would use the _______ approach

• demographic

• geographic

• psychographic

• behavioral

How is a market segmented by 'lifestyle'?

• Products can be aimed specifically at males or females or both
• People have different hobbies and interests, which can be connected to income and location.
• Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
• Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old

___________is based on the way a customer use the product.

• Mass Marketing
• Behavioral
• Target Market
• Demographic

How is a market segmented by 'location'?

• Products can be aimed specifically at males or females or both
• People have different hobbies and interests, which can be connected to income and location.
• Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
• Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old

Market segmentation:

• Divides customers into sub groups

• Is a method of promotion

• Is a qualitative form of market research

• Transports products to customers

An internet travel agent sells expensive round the world cruises. Which of the following market segments is the travel agent most likely to target?

• Families with children under 5

• Local residents

• People with high incomes

• Young, single men

Nintendo, a popular video game company known for its youth-oriented video games, has a sub brand called "Touch Generation." The aim of the Touch Generation brand is to "lure in older non-games by offering skill-building games." This is an example of market segmentation by ...

• Geographic segmentation

• Demographic segmentation

• Psychographic segmentation

• Behavioural segmentation