Interview Amb201 Essay

2275 WordsAug 12, 201510 Pages
Segmentation 1. What is segmentation? Segmentation means to divide the marketplace into parts, or segments, which are definable, accessible, actionable, and profitable and have a growth potential. In other words, a company would find it impossible to target the entire market, because of time, cost and effort restrictions. 2. What are the bases of segmentation? Demographic: groups consumers according to easily measured objective characteristics such as age, gender, income and education. Most common means and easy to identify. Geographic: organizes customers ibto groups on the bases of where they live.(country, region, states) Psychographic: This is how consumers describe themselves. Self values are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life. Eg: self respect, self fulfillment or a specific sense of belonging, This motivates self images on what they want to be. Self concept is the image people ideally have for themselves eg: a fun loving person, gregarious type whom people want to be around. Lifestyles: the way we live. If self values are our end goal, self concept is the way we see ourselves, lifestyles are how we live our lives to achieve goals. Lifestyle is based on income, profession, education level, upbringing, peer influence and so on. Benefit: groups consumers on the basis of the benefits they derive from goods or services. Behavioral: groups consumers on the basis of how they use the product. * Occasion: based on when a product is purchased or consumed. * Loyalty: Loyal customers are those who feel so strongly that the firm can meet their relevant needs best than any competitors. They are the most profitable in the long term. 3. What are the conditions required for a segment to be effective/desirable? -Identifiable: Firms

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