Market segmentation

• What is the main topic covered in this lesson?

  Market segmentation
• How do businesses use market segmentation?

  To target customers by dividing them into segments
• What are some bases for market segmentation?

  Gender, location, lifestyle, income, age
• Why is gender an important base for market segmentation?

  Interests and needs differ between males and females
• How does age group segmentation benefit marketing strategies?

  It allows for personalized marketing for different ages
• What role does income play in market segmentation?

  It determines the purchasing power of the audience
• How does geographic segmentation affect marketing strategies?

  It matches products to different regions and climates
• What is lifestyle segmentation based on?

  Marital status, interests, hobbies, values
• What is demographic segmentation?

  Segmenting based on age, gender, income, etc.
• What does psychographic segmentation focus on?

  Personality, lifestyle, and attitude
• How does behavioral segmentation categorize customers?

  Based on usage, preferences, and decision-making
• What is the significance of brand loyalty in behavioral segmentation?

  It influences repeat purchases and customer retention
• What is the purpose of market mapping?

  To identify gaps in the market and competition
• Why do businesses need to segment their markets?

  To address differing customer needs and preferences
• What are the benefits of market segmentation for businesses?

  Better matching of customer needs and enhanced profits
• How can market segmentation enhance customer retention?

  By marketing products that appeal to different life stages
• What is the impact of competition on market segmentation?

  It encourages businesses to improve pricing and service
• What is illegal in competitive pricing among retailers?

  Agreeing on fixed prices
• What should businesses consider when segmenting geographically?

  Where customers live and climate conditions
• What is a key factor in customer service competition?

  Providing helpful and friendly service
• What are the four types of market segmentation?

  • Demographic segmentation
  • Psychographic segmentation
  • Behavioral segmentation
  • Geographic segmentation
• What are the bases of market segmentation?

  • Gender
  • Age
  • Income
  • Location
  • Lifestyle
• What are the benefits of market segmentation for businesses?

  • Better matching of customer needs
  • Enhanced profits
  • Improved customer retention
  • Targeted marketing communication
• How does market mapping help businesses?

  • Identifies gaps in the market
  • Highlights customer needs not being met
  • Aids in product positioning
• What factors influence customer buying behavior in demographic segmentation?

  • Age
  • Gender
  • Marital status
  • Income
  • Occupation
• How does psychographic segmentation affect marketing strategies?

  • Influences based on personality and lifestyle
  • Tailors marketing to individual attitudes
  • Enhances customer engagement
• What is the role of behavioral segmentation in marketing?

  • Segments based on usage and preferences
  • Identifies brand loyalty levels
  • Affects purchasing decisions
• Why is geographic segmentation important for businesses?

  • Matches products to regional needs
  • Optimizes marketing strategies
  • Focuses on specific customer locations
• What are the implications of competition in market segmentation?

  • Encourages better pricing strategies
  • Improves product quality
  • Enhances customer service
• What should businesses avoid in competitive pricing?

  • Agreeing on fixed prices
  • Colluding with competitors
  • Reducing product quality to cut costs