Market segmentation

Created by

Eekko_Iloo

Cards (33)

What type of customers does Toyota typically target?
People with middle-range incomes looking for good value
What qualities do people associate with Toyota?
Durability, quality, safety, and reliability
Who does Mercedes-Benz primarily target?
Upper-class drivers
What does owning a Mercedes-Benz symbolize for many people?
It is a status symbol indicating wealth and success
What is market segmentation?
It refers to aggregating prospective buyers into groups with common needs
What is the purpose of market segmentation?
To target different categories of consumers who perceive value differently
What are the four primary types of market segmentation?
Demographic segmentation
Geographic segmentation
Behavioral segmentation
Psychographic segmentation
What does demographic segmentation involve?
Splitting audiences based on observable people-based differences
What are some examples of demographic characteristics?
Age, sex, marital status, family size, occupation, education level, income, race, nationality, and religion
What is a benefit of demographic segmentation?
Information is relatively easily accessible and low cost to obtain
How might a personal care company use demographic segmentation?
By creating separate deodorant products for men and women
How can companies gather demographic data?
By asking customers directly or using second and third-party data providers
What is geographic segmentation?
It involves splitting the market based on location
How can geographic segmentation be useful for a clothing company?
By showing ads for warmer clothing to people in cooler climates
What does behavioral segmentation analyze?
Consumer behavior patterns as they interact with a company
What are the four major types of behaviors in behavioral segmentation?
Purchasing and usage behavior, occasion purchasing, benefits sought, and customer loyalty
How can a ride-sharing service use purchasing and usage behavior?
By targeting discounts on weekends for users who don't use the service then
What does occasion purchasing consider?
The timing within a customer's life year or day that influences purchases
How might Starbucks use benefits sought in behavioral segmentation?
By catering to customers who prefer mobile ordering for convenience
Why is customer loyalty important in behavioral segmentation?
It helps in establishing rewards programs to retain customers
What is psychographic segmentation?
It deals with mental and emotional characteristics of consumers
How do luxury brands use psychographic segmentation?
By dividing the market based on social status and lifestyles
What is the first step in implementing market segmentation?
Define your market and assess the need for your products
What should you do in the second step of market segmentation?
Decide which of the four criteria to use for segmentation
How can you understand your market in the third step?
By conducting preliminary research, surveys, and focus groups
What is the purpose of creating customer segments?
To highlight which segments are most relevant to your product or service
What should you do in the final step of market segmentation?
Test your marketing strategy and use conversion tracking
What are the major benefits of market segmentation?
Increased resource efficiency
Stronger brand image
Greater potential for brand loyalty
Stronger market differentiation
Better targeted digital advertising
What is a disadvantage of market segmentation related to marketing expenses?
It can lead to higher upfront marketing expenses
How can market segmentation increase product line complexity?
By creating an overly complex product line focused on specific segments
What is a risk associated with misassumptions in market segmentation?
Grouping populations may lead to misidentifying their needs
Why is reliable data important in market segmentation?
Market segmentation relies on accurate data to support claims
What should marketers be mindful of regarding market segments?
Changing trends and shifts in market segments over time