Market Segmentation

Market segmentation is:

• the process of dividing a market of potential customers into groups, or segments, based on different characteristics.

• Classifying products into the customers who would most likely want to buy it

• the market for tangerines, oranges and lemons

What does it mean when we say that markets are dynamic?

• Markets are cool?

• Markets are always changing?

• Markets stay the same, but are still cool.

• Who knows?

What does the acronym ACORN stand for?

• A class for roaming needs

• A class for random needs

• A classification for residential needs

• A classification for residential neighbourhoods

Why do market segmentation?

• It is good business

• It allows a business to target it's advertising

• It creates economies of scale

• It helps to determine price elasticity

In any market there will be many segments. Each segment is calculated in terms of:

• Value or volume

• Value only

• Volume only

• Potential profit

Which of the following is not a potential benefit to a business of market segmentation:

• Better matching of customer needs

• Target marketing communications

• Retain more customers

• Lost share of the market segment

There are various methods (or "bases") a business can use to segment a market, Geographic, Demographic, Psychographic and behavioural. What does demographic mean?

• relating to the structure of populations

• relating to the structure of products

• relating to the structure of advertising

• None of these

Which of the following is not a behavioural base?

• Rate of usage

• Loyalty of customer

• Benefit sought by the customer

• Lifestyle

Which of the following is not a psycholographic base?

• Occupation

• Personality

• Lifestyle

• Attitude

Which of the following is not a Geographic base?

• ACORN

• Region

• Location

• Readiness to purchase