Segmentation

• What is market segmentation?

  Dividing a market into distinct customer groups
• Why is market segmentation important for businesses?

  It helps tailor products and marketing efforts
• How can effective segmentation improve customer satisfaction?

  By meeting specific requirements of each group
• What are the benefits of market segmentation?

  • Efficient resource allocation
  • Improved customer satisfaction
  • Increased sales
  • Tailored marketing strategies
• What is the process of market segmentation?

  Categorising customers into groups based on characteristics
• What does each market segment represent?

  A target market with unique needs and preferences
• How might a car manufacturer segment its market?

  By targeting budget, environmentally conscious, and luxury buyers
• What are the four main types of market segmentation?

  1. Demographic Segmentation
  2. Geographic Segmentation
  3. Psychographic Segmentation
  4. Behavioural Segmentation
• What factors are considered in demographic segmentation?

  Age, gender, income, education level
• What is an advantage of demographic segmentation?

  Easy to collect and analyse demographic data
• What is a disadvantage of demographic segmentation?

  May overlook individual preferences within categories
• What does geographic segmentation consider?

  Location, such as country and climate
• What is an advantage of geographic segmentation?

  Helps businesses tailor products to local conditions
• What is a disadvantage of geographic segmentation?

  May not fully capture customer needs globally
• What does psychographic segmentation focus on?

  Customers' lifestyles, values, attitudes, and interests
• What is an advantage of psychographic segmentation?

  Provides deeper insights into customer motivations
• What is a disadvantage of psychographic segmentation?

  Requires detailed research and is hard to measure
• What does behavioural segmentation focus on?

  How customers interact with a business
• What is an advantage of behavioural segmentation?

  Enables personalised offers and promotions
• What is a disadvantage of behavioural segmentation?

  Behaviour can change over time, needing monitoring
• What are the benefits of market segmentation for businesses?

  • Targeted marketing campaigns
  • Product customisation
  • Efficient resource allocation
  • Improved customer experience
• How can targeted marketing improve engagement?

  By resonating with specific customer groups
• How does segmentation help in product customisation?

  It meets unique needs of different segments
• How can businesses allocate resources efficiently through segmentation?

  By focusing on high-potential segments
• How can personalised communication enhance customer satisfaction?

  By providing tailored offers and messages
• What challenges may businesses face in market segmentation?

  Data collection, segment overlap, changing preferences
• Why is data collection a challenge in segmentation?

  It can be time-consuming and costly
• What is segment overlap in market segmentation?

  Customers belonging to multiple segments
• How can changing customer preferences affect segmentation?

  Segments may shift due to evolving tastes
• What is the cost of customisation in segmentation?

  Increased costs for separate products or campaigns
• How do businesses apply segmentation in marketing campaigns?

  By creating targeted advertising messages
• How does segmentation inform product development?

  It guides features, design, and pricing strategies
• How can pricing strategies be adjusted through segmentation?

  To reflect purchasing power and price sensitivity
• How can customer service be tailored through segmentation?

  By offering priority service to premium customers
• What is Nike's segmentation strategy?

  • Targets athletes seeking high-performance sportswear
  • Focuses on fitness enthusiasts for stylish activewear
  • Caters to casual wear customers for everyday fashion
• What are the benefits and challenges of different segmentation types?

  • Demographic: Easy data collection, may overlook preferences
  • Geographic: Tailors local strategies, limited for global markets
  • Psychographic: Deep insights, difficult to measure
  • Behavioural: Personalised offers, requires monitoring
• What is the conclusion about market segmentation?

  It helps businesses meet diverse customer needs
• What is required for successful market segmentation?

  Reliable data, regular analysis, and flexibility