Identifiability and measurability the segments must

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IDENTIFIABILITY AND MEASURABILITY. The segments must be identifiable and their size measurable. Descriptive data regarding demographic, geographic, and/or other relevant characteristics of segment members must be available. ACCESSIBILITY. The firm must be able to reach members of targeted segments with customized marketing mixes. RESPONSIVENESS. The market segment must respond differently from other segments to marketing mixes; otherwise, there is no need to treat that segment separately. PTS: 1 REF: 118-119 OBJ: 08-3 TOP: AACSB Communication | TB&E Model Customer 5. What is a segmentation base (or segmentation variable)? Name the common segmentation bases used by marketers to segment consumer markets. ANS:
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A segmentation base (or variable) is a characteristic of individuals, groups, or organizations that mar- keters use to divide a total market into segments. Consumer goods marketers commonly use one or more of the following characteristics to segment markets: Geographic--by region, market size, market density, or climate Demographic--such as age, gender, ethnic background, income, or family life-cycle stage Psychographics--such as motives, lifestyles, or personality Benefit--such as less filling or great taste Usage rate--heavy, medium, or light PTS: 1 REF: 119 OBJ: 08-4 TOP: AACSB Communication | TB&E Model Strategy 6. Discuss the advantages and disadvantages of single-variable segmentation and multiple-variable seg- mentation. ANS: Markets can be segmented using a single variable, such as age group, or several variables, such as age group, gender, and education. Although it is less precise, single-variable segmentation has the advant- age of being simpler and easier to use then multiple-variable segmentation. The major disadvantages of multiple-variable segmentation include: It is often more difficult to employ than single-variable segmentation. Usable secondary data are less likely to be available to define and describe the segments. As the number of segmentation bases increases, the size of individual segments decreases. This can result in segments that are not large enough to warrant individual treatment. PTS: 1 REF: 119 OBJ: 08-4 TOP: AACSB Communication | TB&E Model Strategy 7. What is geographic segmentation? Name four reasons why a company would use a regional marketing approach. Then give a specific example of a company marketing its product(s) regionally. ANS: Geographic segmentation refers to segmenting markets based on region of the country or world, mar- ket size, market density, or climate. Marketers might adopt a regional approach for the following reasons: To meet regional preferences and buying habits. To find new ways to generate sales volume because of mature markets characterized by slow growth and intense competition. Computerized checkout stations with scanners enable retailers to accurately assess which brands are selling well in which regions.
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  • Spring '10
  • Patterson
  • Marketing, AACSB Reflective Thinking, TB&E Model Strategy, A This magazine

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