Answer the questions to the text:

a) What is the difference between mass and one-to-one marketing?

b) What may be the result of unsuccessful segmentation?

c) What is the subject matter of each segmentation basis (descriptive, behavioural and benefit) mentioned in the text?

2) Discuss the following statements, illustrating your arguments with examples:

a) Determining how to segment a market is one of the most important questions a marketer must face.

b) In order to successfully implement a market segmentation strategy, a business must employ market research techniques to find patterns of similarity among customer preferences in a market.

c) Market segmentation is especially important for those businesses, which lack the resources to target large aggregate markets or to maintain a wide range of differentiated products for varied markets.

d) Many marketers use a combination of bases that seem most appropriate when segmenting a market. Using a single variable is undoubtedly easier, but it often turns out to be less precise.

Vocabulary Development

Fill in the table for the words of the key vocabulary and some new words from the text (7- 10 items). The example is given to you.

Word	Definition	Equivalent	Synonyms	Antonyms	Derivatives
distinct	easily sensed or understood	отчётливый; внятный, чёткий, ясный	clear; precise, intelligible, understandable	indistinct, vague, unintelligible, ambiguous, disputable, dubious	distinction, distinctive, distinctly, distinctness, distinctiveness
1, 2,...

Find 10 words from the key vocabulary and the text “Market segmentation” in the word square. Some letters may be used several times.

s	c	l	u	s	t	e	r
e	v	f	t	r	a	i	t
g	a	d	b	a	j	l	p
m	r	i	a	b	l	e	i
e	y	i	e	l	d	h	t
n	s	t	h	a	e	c	f
t	o	l	c	p	c	a	a
a	c	y	i	p	r	o	l
t	i	o	n	f	i	t	l

How do you imagine the segmentation process? What steps should it consist of? Here are 6 steps suggested by Alexander Hiam and Charles D. Schewe. Arrange them in the logical order.

 

Segmentation process

Hiam and Schewe have identified six steps that companies should take in the market segmentation process.

The          step in the market segmentation process is to decide which segment or segments to serve. In targeting a particular segment, a marketer should look for opportunities           (i.e., customers with unsatisfied wants and needs) that provide a good match for the organization and its resources. It is important that the marketer consider not only the size and potential profitability of a market segment, but also whether the company’s skills, technologies, and objectives would enable it to meet the needs of that segment better than its competitors.

The          step in the market segmentation process is actually collecting and analyzing data, which involves applying market research tools. The goal in analyzing the data is to identify market segments that are internally homogeneous, yet are distinctly heterogeneous with respect to other segments.

The           step is to develop a product and marketing plan that will appeal to the selected market segment. This involves identifying the product attributes that are most important to consumers in the segment, and developing a marketing strategy that will attract their attention. In fact, market segmentation can be usefully applied during the earliest stages of product design, when a company first identifies who its target customer will be in terms of demographic, geographic, and behavioral characteristics.

The           step in the process is to decide which variables to use in segmenting the market. Many companies fall into the trap of collecting data on as many variables as possible and then attempting to sort through it later to draw meaningful conclusions. Instead, Hiam and Schewe recommend that marketers use their knowledge of the market to select a few relevant variables in advance. This approach is generally less expensive and will likely provide more useful results.

The          step is to determine the boundaries of the market. In completing this step, a marketer should use a formal business plan to develop a broad definition of their business, and then consider the offerings of both direct and indirect competitors to gain information about the basic needs of consumers in the market.

The           step is to develop a detailed profile of each market segment, which involves selecting those variables that are most closely related to consumers’ actual buying behavior.

In general, customers are willing to pay a premium for a product that meets their needs more specifically than does a competing product. Thus marketers who successfully segment the overall market and adapt their products to the needs of one or more smaller segments stand to gain in terms of increased profit margins and reduced competitive pressures.