17 Lecture - Market Segmentation

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17 Lecture

MGT301

Midterm & Final Term Short Notes

Market Segmentation

Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics. The purpose of market segmentation is to better understand the needs and wants of different consumer groups an


Important Mcq's
Midterm & Finalterm Prepration
Past papers included

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  1. What is market segmentation? a) The process of creating a new product b) The process of dividing a larger market into smaller groups of consumers with similar needs or characteristics c) The process of pricing a product Answer: b

  2. What is the primary goal of market segmentation? a) To create a new product b) To increase brand awareness c) To better understand the needs and wants of different consumer groups Answer: c

  3. Which of the following is NOT a criteria for effective market segmentation? a) Measurability b) Sustainability c) Accessibility d) Substantiality Answer: b

  4. Which type of segmentation is based on geographic location? a) Psychographic segmentation b) Behavioral segmentation c) Demographic segmentation d) Geographic segmentation Answer: d

  5. Which type of segmentation is based on personality, values, and lifestyle? a) Psychographic segmentation b) Behavioral segmentation c) Demographic segmentation d) Geographic segmentation Answer: a

  6. Which type of segmentation is based on usage rate, benefits sought, and brand loyalty? a) Psychographic segmentation b) Behavioral segmentation c) Demographic segmentation d) Geographic segmentation Answer: b

  7. Which type of segmentation is based on age, gender, income, and education? a) Psychographic segmentation b) Behavioral segmentation c) Demographic segmentation d) Geographic segmentation Answer: c

  8. Which of the following is a benefit of effective market segmentation? a) Increased customer loyalty b) Reduced production costs c) Increased market share d) All of the above Answer: d

  9. Which of the following is an example of psychographic segmentation? a) Dividing a market by age group b) Dividing a market by usage rate c) Dividing a market by personality and lifestyle d) Dividing a market by geographic location Answer: c

  10. Which of the following is a disadvantage of market segmentation? a) Increased competition b) Reduced customer satisfaction c) Higher marketing costs d) None of the above Answer: c



Subjective Short Notes
Midterm & Finalterm Prepration
Past papers included

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  1. What is market segmentation? Answer: Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics.

  2. Why is market segmentation important? Answer: Market segmentation is important because it allows businesses to better understand the needs and wants of different consumer groups and develop more targeted and effective marketing strategies.

  3. What are the different types of market segmentation? Answer: The different types of market segmentation include demographic, geographic, psychographic, and behavioral segmentation.

  4. What are the criteria for effective market segmentation? Answer: The criteria for effective market segmentation include measurability, substantiality, accessibility, and responsiveness.

  5. How does market segmentation help businesses in product development? Answer: Market segmentation helps businesses in product development by providing insights into the needs and preferences of different consumer groups, allowing them to develop products that better meet their needs.

  6. What is niche marketing? Answer: Niche marketing is a marketing strategy that targets a specific, small group of consumers with specialized needs or interests.

  7. What are the advantages of niche marketing? Answer: The advantages of niche marketing include reduced competition, increased customer loyalty, and the ability to charge premium prices.

  8. What are the disadvantages of niche marketing? Answer: The disadvantages of niche marketing include limited market size, reduced economies of scale, and greater risk of market changes.

  9. How can businesses identify market segments? Answer: Businesses can identify market segments by conducting market research, analyzing consumer behavior and demographic trends, and using data analysis tools.

  10. How can businesses effectively target market segments? Answer: Businesses can effectively target market segments by developing personalized marketing messages and using targeted advertising channels, such as social media and email marketing.

Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics. This allows businesses to create more targeted and effective marketing strategies that are tailored to the specific needs of each segment. There are several types of market segmentation, including demographic, geographic, psychographic, and behavioral segmentation. Demographic segmentation divides the market based on factors such as age, gender, income, education, and occupation. Geographic segmentation divides the market based on geographic location, such as city, region, or country. Psychographic segmentation divides the market based on personality traits, values, and lifestyle. Behavioral segmentation divides the market based on usage rate, benefits sought, and brand loyalty. Effective market segmentation requires businesses to have a thorough understanding of consumer behavior, demographic trends, and market research data. By analyzing this information, businesses can identify the needs and preferences of different consumer groups and create more personalized marketing messages that resonate with each segment. One of the key benefits of market segmentation is the ability to increase customer satisfaction and engagement. By tailoring marketing messages to the specific needs of each segment, businesses can create a more personalized and relevant customer experience. This can lead to increased customer loyalty, repeat business, and positive word-of-mouth referrals. In addition, market segmentation can also help businesses reduce marketing costs and improve return on investment (ROI). By targeting specific segments, businesses can focus their marketing efforts on the consumers who are most likely to be interested in their products or services, reducing wasteful spending on broad-based marketing campaigns. Overall, market segmentation is a powerful tool for businesses looking to improve their marketing effectiveness and connect with their customers on a deeper level. By understanding the needs and preferences of different consumer groups, businesses can create more personalized and relevant marketing messages that drive engagement, loyalty, and revenue growth.

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