Target market - market dimensions and segments

Which of the following describes a target market?

• An ideal location in which the business would like to position itself in order to maximise sales

• The level of sales that a business aims for, or targets, in order to break even

• The level of sales that a business aims for, or targets, in order to make a desired level of profit

• A group of customers with similar characteristics who currently purchase the product or may do so in the future

Which of the following is NOT an example of a market dimension?

• Democratic

• Geographic

• Psychographic

• Behavioural

Which of the following market segmentations categorises consumers according to age, gender, occupation, education, religion, family size and ethnicity?

• Demographic

• Geographic

• Psychographic

• Behavioural

Which of the following market segmentations categorises consumers according to lifestyle, socioeconomic group, motives, personality, consumer opinions and interests?

• Demographic

• Behavioural

• Psychographic

• Geographic

Which of the following market segmentations categorises consumers according to whether they are a regular user or first-time user, brand loyalty, benefits sought or usage of the product?

• Psychographic

• Geographic

• Behavioural

• Demographic

A target market is a group of customers with similar characteristics who currently purchase the product or may do so in the future.

• True

• False

An example of a target market would be toy manufacturers such as ‘Bratz’ which target female children with their marketing as can be seen by the timing of their television advertisements, which play at a time when many female children have returned home from school.

• True

• False

The purpose of separating the market into dimensions or segments is because

• Few businesses can sell their products to the entire market — the market is just too big. Separating consumers into market dimensions and segments allows a business to better direct its marketing strategies to specific groups of customers.

• Many businesses can easily sell their products to the entire market — the market . Separating consumers into market dimensions and segments allows a business to better direct its marketing strategies to specific groups of competitors.

Market segmentation occurs when the total market is subdivided into groups who share one or more common characteristics.

• False

• True

Benefits that may be achieved when a business targets a specific market are: (select all the options that apply)

• use its marketing resources more efficiently, which results in the marketing campaigns being more cost-effective and time-efficient

• use promotional material that is more relevant to the customers’ needs, and is more likely to be noticed

• better understand the buying behaviour of the target market