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WorksheetsMarket Segmentation
Total questions: 15
Worksheet time: 8mins
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
Think about products such as parkas and bathing suits. How can geographic market segmentation be used to market these products?
Parkas will be sold for most of the year in the colder countries
Bathing suits, are sold year-round in the warmer countries, but only sold during spring and summer in the cooler climes
Both statements are correct
The best way to understand your target customers for psychographic segmentation is to use:
Delphi Oracle Technique
Observations
focus groups, surveys, interviews
Previous statistics
Behavioural segmentation has similar measurements to psychographic segmentation but focuses on specific reactions and the way customers go through their decision making and buying processes. What would be the best way to determine behavioural motivations?
Review websites
Past statistics
Sales records
Observations
Which of these is NOT a common market segmentation mistake?
Creating too small of segments
Not updating your strategy as your customer base changes
Targeting the segment instead of the money
Identifying only one market segment
What is the biggest criticism of market segmentation? (All of these are criticisms, which is deemed the biggest?)
May lose customers not identified as their target market.
limits a business’ approach towards the identification of and interaction with target consumers.
Tends to be more subjective
Hard to identify every segment
