Unit13:Provide Marketing and Problem Support

why is market segmentation carried out?

• To break down large markets into smaller markets

• Provides an opportunity to surpass competitors

• By grouping together customers with similar needs, it provides a commercially viable method of serving these customers

• Allows the achievement of greater market share

The ________________method is one of the main approaches to segmenting markets by adopting the view that the market consists of customers that are essentially the same, so the task is to identify groups which share particular differences

• Nothing

• sample design

• breakdown

• build up

• profile identification

An example of a segmented market would be:

• Phillips marketing its product to all residents of the European Union with one marketing mix based on the concept 'Sense and Sensibility

• high-income and low-income consumers being treated the same at Marks and Spencer (M&S)

• a garden nursery seeing residents of urban areas and rural areas as one market needing trees

• Honda separating its potential customers into economy car buyers and luxury car buyers.

To be effective, the process of market segmentation must meet which of the following basic requirements?

• The firm must avoid focusing on non-variables such as profitability and volume

• The market segment must have measurable purchasing power and size.

• The company must expand beyond its marketing capabilities to capture growing markets

• The market segment must reflect the population's changing attitudes and lifestyles.

Which of the following are the three broad groups of consumer segmentation criteria?

• Behavioural, psychological and profile criteria

• Behavioural-, gender- and industry- type variables

• Organizational size, demographic and behavioural variables

• Psychographic, sociological and price variables

A commonly used basis for segmenting consumer markets is:

• organizational size.

• demographics

• product type

• price

Which of the following is not an example of a behavioural variable?

• Product usage

• Media usage

• Purchase occasion

• Personality

The family life cycle:

• is a way to apply psychographic segmentation

• refers to the process of family formation and dissolution

• provides insights into the relationships among age, occupation, income, and housing

• s composed of the 11 stages of personal growth from infancy to retirement

Psychographic segmentation is based on

• the quantitative side of consumer demographic analysis.

• the quantitative side of consumer geographic analysis.

• individuals' residential patterns and life-cycle preferences.

• grouping people according to their psychological characteristics, values, and lifestyles.

Segmentation by benefits sought is a type of product-related segmentation:

• to determine the marketer's effectiveness in satisfying the consumer.

• used to create a psychographic profile of the benefit of having the product as a common alternative.

• as a post-consumption evaluation tool.

• that focuses on the attributes that people seek in a product.