ITPEC IP October 2024 Question 79
Which of the following is the most appropriate marketing strategy for narrowing down the customer base to focus on by classifying customers on the basis of age, gender, family structure, and the like, and analyzing the purchasing behaviors of each group?
Explanation
Segment marketing — dividing customers into groups by attributes such as age, gender and family structure, and targeting selected groups.
Segment marketing splits the market into segments using demographic, geographic, psychographic or behavioral variables, analyzes the needs and purchasing behavior of each segment, and then chooses which segments to serve with a product, price, channel and promotion suited to them. Narrowing the customer base by classifying customers and analyzing each group's purchases is exactly this process.
Answer (b)
Why not others:
- •(a) Service marketing — marketing of intangible services, dealing with properties such as intangibility and simultaneous production and consumption
- •(c) Social marketing — applies marketing methods to social goals or considers a company's social responsibility, not customer segmentation
- •(d) Mass marketing — the opposite approach: one uniform product and promotion aimed at the whole market without dividing it
Key rule: Segmentation, targeting and positioning (STP) come first in marketing strategy: divide the market into groups, choose the groups to serve, then decide how to be perceived by them.
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