1.2.3 Market segmentation

• Market segmentation enables businesses to target specific segments with tailored products.


  True
• Market segmentation based on location is known as geographic
• What is the primary goal of market segmentation?

  Target specific customer segments
• Market segmentation helps businesses build lasting relationships with their customers.


  True
• What are examples of demographic segmentation variables?

  Age, income, family size
• Segmentation variables help businesses identify customer groups with different needs and behaviors.

  True
• Different segmentation approaches allow businesses to identify customer groups with unique needs, characteristics, and behaviors
• What is a major challenge of market segmentation?

  Accurate segment identification
• Match the benefit of market segmentation with its description:

  Identify Profitable Groups ↔️ Focus on segments most likely to purchase

  Tailor Offerings ↔️ Create products for specific needs

  Effective Resource Allocation ↔️ Use resources efficiently
• What is the primary goal of market segmentation?

  Target specific customer groups
• Businesses use market segmentation to identify groups with the highest revenue potential.


  True
• What does market segmentation involve?

  Dividing a market into groups
• What is demographic segmentation based on?

  Age, gender, income
• Market segmentation helps businesses tailor their products and marketing efforts to meet specific customer needs.

  True
• Targeting multiple segments may lead to customer cannibalization, where customers switch between the company's own products
• Market segmentation allows businesses to identify the most profitable customer groups
• Steps in market segmentation

  1️⃣ Identify segmentation variables

  2️⃣ Divide market into groups

  3️⃣ Analyze group characteristics

  4️⃣ Target specific segments
• Match the benefit of market segmentation with its description:

  Identify Profitable Groups ↔️ Focus on revenue potential

  Tailor Offerings ↔️ Meet specific customer needs

  Optimize Resource Allocation ↔️ Efficiently use resources

  Enhance Marketing Strategies ↔️ Create resonant marketing campaigns
• Arrange the benefits of market segmentation in order of their impact on a business.

  1️⃣ Identify Profitable Groups

  2️⃣ Tailor Offerings

  3️⃣ Optimize Resource Allocation

  4️⃣ Enhance Marketing Strategies
• Match the segmentation basis with its examples:

  Demographic ↔️ Age, income, education

  Geographic ↔️ Region, city, climate

  Psychographic ↔️ Lifestyle, personality, values
• Behavioral segmentation includes variables such as usage rate, brand loyalty, and benefits sought
• Match the segmentation approach with its description:

  Demographic ↔️ Age, gender, income

  Geographic ↔️ Location, climate, urban/rural

  Psychographic ↔️ Lifestyle, personality, values

  Behavioral ↔️ Usage rate, brand loyalty
• Identifying profitable groups is a key benefit of market segmentation.


  True
• What is market segmentation?

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

  Tailoring products to needs
• Market segmentation allows businesses to target specific customer segments with tailored products.


  True
• Tailoring products and services to meet specific customer needs enhances customer satisfaction
• Businesses use market segmentation to focus on customer segments with the highest revenue potential
• What are examples of psychographic segmentation variables?

  Lifestyle, personality, values
• What is geographic segmentation based on?

  Location, climate, urban/rural
• Why is market segmentation important for businesses?

  Identify profitable customer groups
• The benefits of market segmentation often outweigh the challenges if businesses target the right customer segments.


  True