Page 237 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes Multiple Choice Questions:
3. Daily newspapers have to follow …………………… segmentation.
(a) Lifestyle (b) Geographic
(c) Income (d) Benefit
4. Cosmetics companies segment the market on the basis of …………………….

(a) Geography (b) Demography
(c) Income (d) Social class
5. When individuals are guided in their choices by their beliefs and principles and not by
feelings, desires and events, they are said to be motivated by …………………….
(a) Ideals (b) Achievements
(c) Self-expression (d) Action
6. …………………… try to emulate those with higher incomes and possessions, generally
beyond their reach.
(a) Believers (b) Achievers
(c) Strivers (d) Survivors

7. Segmentation on the basis of which of the following variables is not a part of behaviouristic
segmentation?
(a) Usage rate (b) User status
(c) Loyalty status (d) User opinions

9.2 Targeting Marketing Segments

Instead of aiming a single product and marketing programme at the mass market, most companies
identify relatively homogeneous segments and accordingly develop suitable products and
marketing programmes matching the wants and preferences of each segment. It should, however,
be realised that all segments do not represent equally attractive opportunities for a company.
Companies need to categorise segments according to their present and future attractiveness and
their company’s strengths and capabilities relative to different segments’ needs and competitive
situation. The following sequential steps present a useful framework, managers can use for this
purpose:
1. Establish criteria to measure market attractiveness and business strength position.
2. Evaluate market attractiveness and business strength factors to ascertain their relative
importance.
3. Assess the current position of each potential segment on each factor.
4. Project the future position of each market segment based on expected environmental,
customer, and competitive trends.
5. Evaluate Segment Profitability.
6. Evaluate implications of possible future changes with respect to strategies and requirement
of resources.
Before making the final decision of choosing the market segment, it is necessary to examine that
the segment is at least strongly positive on one of the two dimensions of market attractiveness
and business strength and is at least moderately positive on the other.

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