segmentation and target market

True or False: Psychographics can be what people value, their lifestyles, their hobies, and attitudes.

• True

• False

Which of the following is an advantage of using market segmentation?

• It allows a business to charge higher prices

• It lets a business invest more in plant and machinery

• It saves business money by avoiding the need for TV advertising

• It allows a business to target its promotional strategy more effectively.

Market segmentation:

• Divides customers into sub groups

• Is a method of promotion

• Is a qualitative form of market research

• Transports products to customers

The particular market segment at which a business aims its products is known as the:

• Target Market

• Unique Selling Point

• Main Market

• Market Leader

What is a disadvantage of using market segmentation?

• You can't sell your products to everyone

• It is rarely effective

• It requires additional market research

• Not everyone likes tangerines

The term "Demographics" refers to

• Grouping potential customers based on their beliefs and preferences

• Grouping potential customers based on whether or not they have purchased a product in the past

• Grouping potential customers using statistical data such as age, race and gender

• Grouping potential customers based on where they live

A business' target market includes

• Everyone

• All the people who might use a product or service

• The specific people that the company is aiming to reach with its marketing and sales efforts

• One segment of the market

What is the purpose of market segmentation

• Market segmentation helps a business to understand the different groups of consumers that make up the market.

• Market segmentation helps business develop plans for a specific product with a target audience in mind so a company can increase its sales.

• It helps business to differentiate their products.

• It helps business to achieve their objectives

What is geographic segmentation?

• Geographic segmentation is a marketing strategy used to target products and services who live in, or shop in a particular location

• Geographic segmentation is the analysis of a population in a geographical area and what the population consist of

• Geographic segmentation is the research methodology used for studying consumers and dividing them into groups using Geographic characteristics

A disadvantage of market segmentation is...

• Making different product variants for different segments is expensive

• It will lead to products better suited to customer needs

• It will reduce marketing costs by not targeting unprofitable segments

• It helps businesses avoid entering overly-competitive markets