MarketingLesson 1 of 4 in the course Market Segmentation, Targeting, and Positioning

Consumer Market Segmentation: Geographic, Demographic, Behavioral, and Psychographic Bases

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

Market segmentation helps organizations focus on the consumers most likely to value their offerings. This lesson explains what segmentation means and why it can improve marketing decisions.

Market segmentation is the process of dividing a target market into smaller, more precisely defined groups of consumers or organizations that share common needs and are expected to respond similarly to a marketing action.

All flashcards

Market segmentation
Dividing a target market into smaller groups with shared needs and likely similar responses to marketing actions.
Geographic segmentation
Grouping consumers by where they live, using factors such as location, climate, language, or population density.
Psychographic segmentation
Grouping consumers by characteristics such as lifestyle, personality, and values that can influence buying behavior.
VALS framework
A framework that classifies consumers into eight broad types based on values, attitudes, and lifestyles.
Multi-segment marketing
Using multiple segmentation bases to understand or serve several consumer groups.

Quiz questions

  1. What does geographic segmentation primarily classify consumers by?Answer: Where they live
  2. Which is a demographic segmentation variable?Answer: Income
  3. What distinguishes benefit segmentation from other behavioral approaches?Answer: It groups consumers by the benefits they consider important.
  4. What does occasion segmentation use to group consumers?Answer: When they purchase or plan to purchase
  5. How is the Pareto principle commonly applied in marketing?Answer: A relatively small share of loyal customers may generate a large share of revenue.

Based on Principles of Marketing by Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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