2.3 Market segmentation

• Match the geographic factor with its example:

  City ↔️ Locating stores in high-traffic areas

  Neighborhood ↔️ Grocery store stocking ethnic products
• Promoting a bold fragrance to adventurous individuals is an example of segmentation based on personality.


  True
• Geographic segmentation divides the market based on location.


  True
• Geographic segmentation is useful for businesses with localized operations
• Segmentation increases marketing efficiency by reducing waste
• Age is a key factor in demographic segmentation because different age groups have varying needs
• Different age groups have varying needs and preferences
• Why is demographic segmentation considered a common and effective method?

  Factors are quantifiable
• What type of variations does regional geographic segmentation account for?

  Climate, resources, demographics
• Match the segmentation basis with its description:

  Demographic ↔️ Dividing by characteristics like age

  Geographic ↔️ Dividing by location

  Psychographic ↔️ Dividing by lifestyle or values

  Behavioral ↔️ Dividing by usage or loyalty
• Segmentation leads to a better return on investment (ROI) through targeted marketing.


  True
• What is geographic segmentation based on?

  Location
• Market segmentation is the process of dividing a market into distinct groups of customers with different needs, characteristics, or behaviors
• Match the segmentation basis with its description:

  Psychographic ↔️ Lifestyle, personality, values

  Behavioral ↔️ Usage, loyalty, response to marketing
• Behavioral segmentation focuses on customer responses to marketing efforts.


  True
• Market segmentation allows businesses to move from generic to tailored marketing campaigns.


  True
• Income levels directly influence consumer spending habits.


  True
• What demographic factor influences spending habits and product preferences?

  Income
• Arrange the geographic factors in order from broadest to most specific.

  1️⃣ Country

  2️⃣ Region

  3️⃣ City

  4️⃣ Neighborhood
• A grocery store stocking products tailored to the ethnic makeup of a neighborhood is an example of geographic segmentation.
• By understanding the unique needs of each customer segment, businesses can develop tailored products, pricing, and promotional strategies.
• What does psychographic segmentation focus on?

  Lifestyle, personality, values
• What is an example of targeting a demographic factor with children's toys?

  Age
• Adapting products for the Chinese vs. US market is an example of geographic segmentation based on country
• What does geographic segmentation allow businesses to improve?

  Marketing effectiveness
• How does aligning products with psychographic profiles benefit businesses?

  Stronger customer relationships
• What can businesses develop by understanding behavioral factors?

  Highly targeted strategies
• Steps in developing a targeted marketing strategy

  1️⃣ Identify customer segments

  2️⃣ Understand segment needs

  3️⃣ Develop tailored products

  4️⃣ Create targeted promotional strategies
• What does market segmentation lead to in terms of customer satisfaction?

  Enhanced satisfaction
• Targeted marketing reduces waste by allocating resources to the most promising customer segments.


  True
• Conducting market research for segmentation is resource-intensive.

  True
• The benefits of market segmentation outweigh the drawbacks if resources are allocated efficiently.

  True
• What is the primary focus of demographic segmentation?

  Customer characteristics
• Order the benefits of market segmentation:

  1️⃣ Improved Targeting

  2️⃣ Increased Efficiency

  3️⃣ Enhanced Customer Satisfaction

  4️⃣ Better ROI
• Income levels influence customer spending habits.

  True
• What does geographic segmentation allow businesses to improve?

  Marketing effectiveness
• Match the psychographic factor with its description:

  1️⃣ Lifestyle

  2️⃣ How people live and spend their time

  3️⃣ Personality

  4️⃣ Individual traits and characteristics

  5️⃣ Values

  6️⃣ Fundamental beliefs and principles

  7️⃣ Attitudes

  8️⃣ Feelings and perceptions towards brands
• What is rewarded in behavioral segmentation for loyal customers?

  Loyalty programs
• One benefit of market segmentation is increased marketing efficiency
• What is one pro of market segmentation for marketing efforts?

  Improved targeting