Unit 3.3- Segmentation, targeting and positioning

Question 1

What are the 5 types of segmentation?

Answer 1

Demographic segmentation
Geographic segmentation
Income segmentation
Socioeconomic segmentation
Behavioural segmentation

Question 2

What is demographic segmentation?

Answer 2

characteristics of the people in the target population

Question 3

What is geographic segmentation?

Answer 3

areas where the customers are based, differing tastes and preferences.

Question 4

What is income segmentation?

Answer 4

split into high and low income, high income may be more interested in saving and investing whereas low income borrowing

Question 5

What is socioeconomic segmentation?

Answer 5

segmentation on income and professions

Question 6

What does behavioural segmentation focus on?

Answer 6

When they buy
How much they buy
Brand loyalty
The benefit they want from the product

Question 7

What is a niche market?

Answer 7

a smaller specific segment of the market

Question 8

What is a mass market?

Answer 8

the whole of the market

Question 9

What is needed to be successful in a mass market?

Answer 9

• Larger volumes (therefore investment and capacity) to fulfill orders
• Promotional techniques to reach more customers
• Positioning in the market

Question 10

What influences the positioning of a product?

Answer 10

• The strengths of the business - an efficient business may aim to be a low price provider
• Innovative business - providing greater benefits than rivals
• Competitors - what are established firms already offering
• Market conditions