What does segmentation do with customers?
It groups customers with similar needs into homogeneous segments.
What are the three steps of the STP process?
Segmentation, targeting, and positioning.
Which company conducted a 2005 study segmenting hypertension patients by attitudes and adherence?
McKinsey & Company.
What are the six criteria for a useful market segmentation?
Identifiable, substantial, accessible, stable, differentiable, and actionable.
What are the three questions grouping consumer segmentation variables?
Who buys, what customers buy, and why they buy it.
What three factors does the RFM model use to segment customers?
Recency, frequency, and monetary value of purchases.
How much did loyal bank customers increase product purchases in the Belgium, Germany, Italy study?
They bought 40% more products than average customers.
What does targeting evaluate and select in marketing?
The attractiveness of market segments and which to pursue.
What distinguishes mass marketing from one-to-one marketing?
Mass marketing offers the same product broadly; one-to-one personalizes for individuals.
What was the reason for replacing Coke C2 with Coke Zero?
Consumers wanted a full-flavored drink with no calories and Coke C2 sales cannibalized existing products.
Answer 11 questions on Segmentation and Targeting Methods.
1. What is the primary purpose of customer segmentation?
2. Which sequence correctly describes the STP process?
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