What is Customer Segmentation?

The video explains customer segmentation, a process of grouping customers based on similarities to predict their behavior. It highlights the benefits of targeted marketing, which reduces costs and increases sales. The video discusses four main characteristics used for segmentation: demographic, geographic, psychographic, and behavioral. It concludes with the targeting process, where companies evaluate potential profits from segments to decide their marketing focus.

What is the primary goal of customer segmentation?

• To increase the number of customers

• To group customers based on similarities

• To increase advertising costs

• To reduce the number of products

Why is targeting specific customer groups more profitable?

• It increases the number of advertisements

• It reduces advertising costs and increases sales chances

• It allows for more product variety

• It decreases the need for market research

Which characteristic is NOT typically used for customer segmentation?

• Behavioral

• Astrological

• Geographic

• Demographic

What do psychographic characteristics focus on?

• Customer purchase history

• Customer age and income

• Customer attitudes and lifestyle

• Customer location

What is the process of evaluating potential profits from segments called?

• Surveying

• Advertising

• Targeting

• Clustering