Chapter 3
Market Segmentation
Q.1 State why you agree or disagree with the following statements:
1. Market targeting is dividing a market into smaller segments of buyers with distinct needs,
characteristics, or behaviors that might require separate marketing strategies or mixes.
2. Demographic segmentation Dividing a market into different geographical units, such as
nations, states, regions, counties, cities, or even neighborhoods.
3. Psychographic segmentation Dividing a market into different segments based on social
class, lifestyle, or personality characteristics
4. Market targeting evaluating each market segment’s attractiveness and selecting one or
more segments to enter.
5. A target market consists of a set of buyers who share common needs or characteristics that
the company decides to serve.
6. the art and science of fitting the product or service to one or more segments of the broad
market in such a way as to set it meaningfully apart from competition referred to positioning.
7. There is a single way to segment a market where marketers use only one base to segment a
market.
8. Segmenting consumer market based on Geographic, Demographic, psychographic and
behavioral bases.
9. Marketer often uses multiple segmentation bases in an effort to identify smaller, better-
defined target groups.
10. Gender segmentation is dividing a market into different segment based on income level.
11. Psychographic factors are the most popular bases for segmenting consumer group.
12. Many marketer believe that behaviour variables are the best starting point for building
market segments.
13. Age and life cycle revered to dividing a market into different age and life cycle groups.
14. Benefit segmentation is dividing the market into segments according to the different
benefits that consumers seek from the products.
15. User status Can be segmented into nonusers, ex-users, potential users, first users and
regular users of a product.
16. Usage rate can be segmented into light, medium and heavy product users.
17. Differentiated marketing is a market-coverage strategy in which a firm decides to ignore
market segment differences and deal with a market as a whole.
18. Undifferentiated marketing is a market-coverage strategy in which a firm decides to
target several market segments and designs separate offers for each.
19. Concentrated marketing is a market-coverage strategy in which a firm goes after a large
share of one or a few segments or niches.
20. Not all segmentations are effective, to be useful market segments must be Measurable,
Accessible, Substantial, Differentiable, and Actionable.
21. Product position is the way a product is occupies in consumer minds relative to
competing products.
22. Competitive advantage referred to an advantage over competitors gained by offering
greater customer value.
Q2. Identify Major Segmentation bases that the company used to segment its consumer
market.
1. Domino’s pizza is the nation largest pizza chains introduce new taste of pizza of pork free
for Muslim peoples. (Demographic segmentation)
2. Nike shoes company decided to introduce new pair of shoes to a new market in west
regions adaptable for the climate there. (Geographic Segmentation)
3. Apple is a mobile cell phone company create new generation of mobile phones targeting its
female customers. (Demographic segmentation )
4. Zara is a Spanish retailer specializes in fashion, and products include clothing, accessories,
shoes, swimwear, beauty, and perfumes manages more than 20 clothing collections based on
lifestyle.(psychographic segmentation)
5. Vichy is a skin care cosmetics advertise its sun protection cream heavily in
summer.(Occasion segmentation)
6. Procter and Gamble introduce pampers samples as a gift for newborn babies for new
mothers in hospitals.( User Status)
Q3. Identify Target market strategy that used by company to target its
customers.
1. Pepsi company decided to ignore market segment difference and target the whole market
with one offer such strategy is called…………..
2. Proctor and Gamble markets six different laundry detergent brands(Bold, Cheer, Dash,
Dreft , Gain and Tide) which compete with each other on supermarket shelves such strategy
is called ………………
3. The new application of the corner, which serves the downtown area only, is based on the
idea of asking someone to park his car such strategy is called………
Q.4 Write short notes on the following topics:
1. Major steps in designing a customer-driven marketing strategy.
2. Major bases for segmenting consumer market.
3. Requirements for effective segmentation
4. Market targeting strategy.
5. Differentiation and positioning strategies.
