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Chapter 4 Questions - Marketing management
Course: Marketing Management (MARKETNG 300)
104 Documents
Students shared 104 documents in this course
University: University of Wisconsin-Madison
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1. How does a segment differ from a target? What are 4 key features of a good
segment? Why does “pointless” segmentation occur? Why is it important to
segment? How do you know when to stop?
Market Segment: a relatively homogeneous group of customers who will respond to a marketing
mix in a similar way.
Segmenting: A aggregating process that clusters people with similar needs into a market
segment.
A segment further differentiates a target, it breaks down a target to smaller groups of people and
uses different tools to appeal to them. For example, a new iphone could be targeted at the
upper class. But then segmented into groups to market to children vs business men differently.
Criteria are homogeneous within, heterogeneous between, substantial, operational. (more on
page 95).
2. When do you choose a single segment strategy vs. a multiple or a combined
market strategy? What are the advantages and disadvantages of each strategy?
When is the largest segment not always the best choice to pursue? Describe the
relationship between segments and targets?
Single: segmenting the market and picking one of the homogeneous segments as the firms
target market.
Multiple: segmenting the market and choosing 2 or more segments and then treating each as a
target market needing a different marketing mix
Combined: combining 2 or more submarkets into 1 larger target market as a basis for 1 strategy.
Single segment strategy aims at 1 segment and looks at the specific details to try to appeal to
them very well. Can really appeal to the entire small semgent, thus build loyal customers, and
procuce bigger sales.
Combiners try to increase their target markets by combining 2 or more segments, look at
various submarkets for similarities and try to appeal to the combined customers with just 1
marketing mix. This approach may help achieve some economies of scale. It may also require
less investment than developing marketing mixes for different segments- making it especially
attractive for firms with limited resources.
Chosing depends on the firms resources, nature of competition, and most importantly the
similarity of customer needs, attitudes, and buying behavior. Usually safer to be a segmenter- to
try to satisfy some customers very well instead of many just fairly well. (Quality over quantity,
less is more). Page 98-99
3. What are three potential dimensions on which to segment consumer markets, and
examples of each? What is the difference between a qualifying and determining
dimension? Give an example of how they can change over time.
Qualifying dimensions: those relevant to including a customer type in a product-market
ex) age identification, drivers license,