1.2.3 Market Segmentation

• What are the four common methods of market segmentation?

  Demographic, geographic, psychographic, behavioral
• Name one common type of market segmentation.

  Demographic
• What is an example of a factor used in geographic segmentation?

  Climate
• Match the segmentation basis with its example:

  Demographic ↔️ Age

  Geographic ↔️ Climate

  Psychographic ↔️ Lifestyle

  Behavioral ↔️ Usage rate
• Market segmentation can improve customer satisfaction by aligning products with target markets.


  True
• Market segmentation involves dividing a market into distinct groups based on various characteristics
• Behavioral segmentation categorizes consumers by brand loyalty and purchase occasion.


  True
• The purpose of market segmentation is to identify target markets
• What is one advantage of using market segmentation?

  Tailoring products to needs
• Psychographic segmentation groups consumers based on lifestyle, values, attitudes, and interests
• Market segmentation helps businesses allocate resources more effectively.


  True
• Demographic segmentation uses factors like age, gender, income, and occupation
• What is an example of behavioral segmentation?

  Usage rate
• Psychographic segmentation groups consumers based on their values
• Effective market segmentation requires segments to be measurable and accessible.


  True
• Market segmentation helps businesses tailor products to meet specific customer requirements.


  True
• Market segmentation can lead to increased customer satisfaction and profitability.

  True
• What is one criterion for effective market segmentation?

  Measurable
• Businesses can develop tailored products and marketing strategies by understanding unique customer needs
• Marketing efforts can reach specific platforms and locations if a segment is accessible
• Marketing plans can be adjusted based on segment preferences if the segment is actionable
• Implementing effective segmentation strategies can lead to higher marketing costs
• What type of segmentation focuses on lifestyle, values, and attitudes?

  Psychographic
• What is market segmentation?

  Dividing a market into groups
• Effective market segmentation requires groups that are measurable and accessible.


  True
• Demographic segmentation includes factors like age, gender, income, and occupation.

  True
• What is the main purpose of market segmentation?

  Tailoring products to needs
• Why do businesses use market segmentation?

  Better position their offerings
• Order the following market segmentation methods from broad to specific.

  1️⃣ Geographic

  2️⃣ Demographic

  3️⃣ Psychographic

  4️⃣ Behavioral
• Match the segmentation method with its key factor:

  Demographic ↔️ Income

  Geographic ↔️ Climate

  Psychographic ↔️ Lifestyle

  Behavioral ↔️ Usage rate
• What are the four primary methods of market segmentation?

  Demographic, geographic, psychographic, behavioral
• What is the purpose of market segmentation?

  Identify target markets
• Why do businesses use market segmentation to allocate resources more effectively?

  To serve target markets
• Businesses can develop tailored products and services by understanding the unique needs and behaviors of each customer segment
• A measurable market segment is one where its size and purchasing power can be assessed
• What does the term 'measurable' refer to in market segmentation?

  Quantifiable and assessed
• Why must market segments be differentiable from one another?

  To address unique needs
• What is one disadvantage of using market segmentation?

  Overlooking smaller niches
• Match the segmentation basis with its key factors:

  Demographic ↔️ Age, gender, income

  Geographic ↔️ Location, climate, density

  Psychographic ↔️ Lifestyle, values, attitudes

  Behavioral ↔️ Usage rate, brand loyalty
• A substantial market segment is one that is large enough to be profitable