4.2 Market Segmentation

• What does market segmentation involve?

  Dividing a market into subgroups
• Market segmentation allows businesses to understand customer needs better.
• What are the common methods of market segmentation?

  Demographic, geographic, psychographic, behavioral
• Analyzing market segments based on demographics involves factors such as age, gender, income, education, and family size
• Geographic segmentation considers factors like location and climate.
• What does psychographic segmentation focus on?

  Lifestyle, values, interests
• What is the purpose of selecting target markets?

  To focus marketing efforts
• Steps in the market segmentation process

  1️⃣ Identify segmentation methods

  2️⃣ Analyze market segments

  3️⃣ Select target markets

  4️⃣ Evaluate segment suitability

  5️⃣ Develop marketing strategies
• What are the characteristics used in demographic segmentation?

  Age, gender, income, education
• Market segmentation allows businesses to understand and serve their customers' needs more effectively
• Higher profitability is a direct benefit of market segmentation.
• What is enhanced marketing efficiency a result of in market segmentation?

  Targeted marketing campaigns
• How does geographic segmentation divide customers?

  Location, climate, urban vs. rural
• Psychographic segmentation appeals to consumers based on their lifestyle, values, and interests
• Behavioral segmentation considers usage rate and brand loyalty.
• Match the segmentation method with its example:

  Demographic ↔️ Targeting young professionals with luxury apartments

  Geographic ↔️ Marketing winter coats in colder regions

  Psychographic ↔️ Appealing to eco-conscious consumers

  Behavioral ↔️ Offering loyalty programs to frequent buyers
• What is the key consideration in age-based demographic segmentation?

  Distinct needs and preferences
• Gender-based marketing strategies are common in the cosmetics industry.
• Affluence determines purchasing power and price sensitivity
• What factors influence geographic segmentation?

  Location, climate, urban vs. rural
• What is an example of geographic segmentation based on regional tastes?

  A fast-food chain offering specialties
• Combining geographic and demographic segmentation creates highly targeted marketing strategies.
• Market Segmentation involves dividing a market into distinct subgroups of consumers based on shared characteristics
• Match the segmentation base with its characteristics:

  Demographic ↔️ Age, gender, income

  Geographic ↔️ Location, climate, urban vs. rural

  Psychographic ↔️ Lifestyle, values, interests

  Behavioral ↔️ Usage rate, brand loyalty
• Market segmentation improves brand loyalty by meeting specific customer needs
• Market segmentation allows businesses to enhance marketing efficiency
• Arrange the benefits of market segmentation in order of their impact on a business, from immediate to long-term:

  1️⃣ Better Understanding of Customer Needs

  2️⃣ Enhanced Marketing Efficiency

  3️⃣ Increased Customer Satisfaction

  4️⃣ Improved Brand Loyalty

  5️⃣ Higher Profitability
• What is an example of a tech company using targeted marketing to increase profitability?

  Focusing on business solutions
• Market segmentation allows businesses to deeply understand customer preferences and requirements
• Targeted marketing campaigns based on segmentation lead to higher conversion rates.
• Match the segmentation method with its primary characteristic:

  Demographic ↔️ Age, gender, income

  Geographic ↔️ Location, climate

  Psychographic ↔️ Lifestyle, values, interests

  Behavioral ↔️ Usage rate, brand loyalty
• Analyzing market segments based on demographics involves understanding needs based on age, gender, and income
• Geographic segmentation includes categorizing markets based on urban versus rural areas.
• What are the three main factors considered in geographic segmentation?

  Location, climate, urban/rural
• Psychographic segmentation focuses on consumer attitudes, interests, and values
• Behavioral segmentation groups consumers based on their interaction with products.
• What is an example of behavioral segmentation based on brand loyalty?

  Loyal Starbucks customers get rewards
• Market segmentation allows businesses to understand and serve specific customer needs
• Match the segmentation method with an example:

  Demographic ↔️ Targeting young professionals with luxury apartments

  Geographic ↔️ Marketing winter coats in cold regions

  Psychographic ↔️ Appealing to eco-conscious consumers

  Behavioral ↔️ Offering loyalty programs
• Geographic segmentation divides the market based on location, climate, and urban/rural areas