Master of Business Administration- MBA Semester 2MB0046
Marketing Management - 4 Credits(Book ID: B 1629)Assignment Set -1 (60 marks)
Note: Assignment Set -1 must be written within 6-8 pages. Answer all questions.
Q.1 A. Explain the six criteria for effective market segmentation 5+5 = 10 marks
Process of dividing the market according to similarities that exist among the various subgroupswithin the market. The similarities may be common characteristics or common needs anddesires. Market segmentation comes about as a result of the observation that all potential users of a product are not alike, and that the same general appeal will not interest all prospects. Therefore,it becomes essential to develop different marketing tactics based on the differences amongpotential users in order to effectively cover the entire market for a particular product. There arefour basic market segmentation strategies: behavior segmentation, demographic segmentation,geographic segmentation, and physiographic segmentation.Basis for segmenting consumer marketsGeographic segmentationThe market is segmented according to geographic criteria
nations, states, regions, countries,cities, neighborhoods, or zip codes. Geo-cluster approach combines demographic data withgeographic data to create a more accurate profile of specific  With respect to region, in rainyregions you can sell things like raincoats, umbrellas and gumboots. In hot regions you can sellsummer wear. In cold regions you can sell warm clothes.Demographic segmentationDemographic segmentation consists of dividing the market into groups based on variables suchas age, gender, family size, income, occupation, education, religion, race and nationality. As onemight expect, demographic segmentation variables are amongst the most popular bases forsegmenting customer groups. This is partly because customer wants are closely linked to