_______ segmentation focuses on why people buy what they buy. course hero

What are the 4 types of segmentation?

Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types.

What is the main purpose of segmentation?

Segmentation acknowledges that different people and groups have different needs. Successful marketers use segmentation to figure out which groups (or segments) within the market are the best fit for the products they offer. These groups constitute their target market.

What are the 4 benefits of market segmentation?

Benefits of Market SegmentationIncreases clarity. ... Develops consumer insights. ... Improves brand loyalty and customer engagement. ... Streamlines mass customization. ... Optimizes for cost efficiency and resource management. ... Grows niche marketing capabilities. ... Promotes the application of business data. ... Enhances reliable assessments.More items...•

What is benefit segmentation give a good example?

An Athletic Footwear Company People, who run an athletic footwear company can use this concept to segment their market into trail runners, professional runners, and recreational runners. Footwear for trail runners must be comfortable, less slippery, and must reduce the risk of injury.

How is psychographic segmentation used?

The way to start your psychographic segmentation is to conduct research into the interests and hobbies of your customers. This is an easy step: the methodology is straightforward and, for the most part, people are willing to talk about their interests. You may want to ask about: Sports.

What is psychographic segmentation method?

Psychographic segmentation is the research methodology used for studying consumers and dividing them into groups using psychological characteristics including personality, lifestyle, social status, activities, interests, opinions, and attitudes.

What is consumer segmentation?

Your Marketing Strategy: Consumer Segmentation Definition Consumer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests, and spending habits.

What is a demographic segmentation?

What is demographic segmentation? Definition: Demographic segmentation groups customers and potential customers together by focusing on certain traits such as age, gender, income, occupation & family status.

What is the market segmentation?

At its core, market segmentation is the practice of dividing your target market into approachable groups. Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioural criteria used to better understand the target audience.

What is psychographic segmentation example?

Examples: Psychographic segmentation examples include luxury items and articles that appeal to a particular lifestyle such as vegetarians and pescatarians. Examples of behavioral segmentation include choosing one product over another due to variation or functionality.

What is an example of behavioral segmentation?

The best example of behavioral segmentation by loyalty is observed in the hospitality segment where airlines, hotels, restaurants and others give their best service to provide the most excellent experience possible such that they can retain their customer. Service is a major differentiator in hospitality sector.

What is occasion segmentation?

Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

What is the principle behind segmentation?

One of the basic principles behind segmentation is that subgroups of customers can be identified on some basis of similarity. Correct answer: true. Explanation: One of the principles behind segmentation is that subgroups of customers can be identified on some basis of similarity.

Why is demographic segmentation the most popular segmentation approach?

Explanation: Demographic segmentation is one of the most popular segmentation approaches because customer needs and wants tend to vary with some degree of regularity based on demographic differences and because of the relative ease of measurement of the variables.

What is a niche strategy?

A niche strategy is the same as Porter's focus strategy and is a concentrated target marketing approach. Explanation: A concentrated target marketing approach, which Michael Porter refers to as a focus strategy and is also popularly called a niche strategy, involves targeting a large portion of a small market.

Do blue collar jobs pay more than white collar jobs?

That is, many traditionally blue-collar jobs may pay higher wages than white-collar positions depending in part on the strength of the union within the firm and industry. For many marketing managers, segmentation by benefit sought is the best place to start the process of market segmentation. Correct answer: true.

Is business market segmentation more straightforward than consumer market segmentation?

Business market segmentation is less straightforward than segmentation of consumer markets. Correct answer: false. Explanation: In some ways, business market segmentation is more straightforward than that of consumer markets. This is partly because there is often a more defined universe of potential customers.

What is niche strategy?

A niche strategy is the same as Porter's focus strategy or concentrated target marketing. TRUE. Generation Y, people born between 1965 and 1977, tend to be pragmatic, optimistic, good team players, savvy, and edgy in nature. TRUE.

Is ChristianMingle a B2B or B2C?

One of the easiest, most straightforward methods of segmentation is demographic. In general, B2B segmentation is more straightforward than B2C segmentation. ChristianMingle, the Christian online dating service, uses an undifferentiated target marketing approach.