The 4th chapter of our Marketing learning course is “Market segmentation”. In this article, we’ll learn the 25 most important market segmentation questions and their answers.
It will help you understand the important market segmentation terms and their explanations quickly.
You can read the previous three chapters of our marketing learning course here if you missed them.
- 30 Important Introduction to Marketing Questions and Answers [With PDF]
- 25 Important Marketing Environment Questions and Answers [With PDF]
- 35 Important Functions of Marketing Questions and Answers [With PDF]
By reading this post, you may quickly prepare for marketing courses and for any competitive tests such as school and college exams, vivas, job interviews, and so on.
So let’s get started.
Market Segmentation Questions and Answers
The 25 important market segmentation questions and answers are as follows:
Question 01: What is a Market?
Answer: A market is a set of current and potential buyers of a particular product or service.
Question 02: What are the Characteristics of the Market?
Answer: The characteristics of the market are as follows:
- The market is the collection of current and prospective buyers.
- There must be market demand for the product or service.
- Purchasers must be able to afford it.
- Buyers must be prepared to spend money.
- Current and prospective buyers must have the legal right to buy goods or services.
Question 03: What is the Classification of Market?
Answer: The classification of the market is as follows:
- Consumer market
- Industrial market:
- Producers market
- Resellers market
- Government Market
- Institutional Market
Question 04: What is a Consumer Market?
Answer: A consumer market is a market made up of people who buy goods and services to meet their own, family members, and homeowners’ personal needs.
Question 05: What are the Characteristics of a Consumer Market?
Answer: The characteristics of a consumer market are as follows:
- The consumer market is a market made up of the final consumers.
- Consumer markets develop in areas where people live.
- In this market, consumers’ primary goal is to consume.
- Customers buy small quantities of products as needed on a regular basis.
- Consumers primarily purchase products to meet their needs.
Question 06: What is the Industrial or Business Market?
Answer: Institutions that purchase goods or services for reproduction or to supply goods or services to society are called industrial markets or business markets.
Question 07: What are the Characteristics of the Business Market?
Answer: The characteristics of a business market are as follows:
- Business markets consist of producers, recyclers, or resellers.
- The number of buyers in this market is much less than in the consumer market.
- Although the number of buyers in the business market is small, the volume of their transactions is much higher.
- One of the characteristics of this market is the inflexibility of demand.
- Buyers purchase goods directly from the manufacturer
Question 08: What is the Difference between Consumer Market and Business Market?
Answer: The three important differences between the consumer market and business market are as follows:
- The main purpose of purchasing goods from the consumer market is to achieve satisfaction through personal and family consumption or use, while the main purpose of buying goods from the business market is to make a profit through production and resale.
- In the consumer market, buyers buy goods for themselves and their family members, and the amount of purchases is less; whereas in the business market, buyers buy goods for the purpose of producing or reselling goods, and the amount of purchases is comparatively higher.
- Consumers in the consumer market live in scattered conditions in different parts of the world, so their location is global, while buyers in the business market are mostly concentrated in certain regions.
Question 09: What is Producers Market?
Answer: A producer’s market is a market consisting of buyers who purchase goods or services for the purpose of reproduction or for industrial use.
Question 10: What is a Reseller Market?
Answer: A reseller market is one that consists of buyers of goods or services for resale. This market is made up of various types of intermediaries. For example, wholesalers, retailers, and so on.
Question 11: What is Government Market?
Answer: A government market is a market consisting of government organizations that purchase or rent goods or services to carry out their activities.
Question 12: What is Institutional Market?
Answer: The market consisting of non-profit organizations is called the institutional market.
Question 13: What is Market Segmentation?
Answer: Market segmentation is the process of dividing the whole market into smaller subdivisions into several sub-markets with the same characteristics.
Question 14: What are the Objectives or Benefits of Market Segmentation?
Answer: The important objectives and benefits of market segmentation are as follows:
- Selecting appropriate strategy
- Satisfying customers
- Success in competition
- Establishing control
- Determining the group of buyers
- Determining threats and opportunities
Question 15: Why is Market Segmentation Done?
Answer: The main purpose of market segmentation is to make more profit by satisfying the customer at a low cost.
However, the market is divided in order to coordinate the company’s marketing program with the market demand.
The marketing organization can segment the overall market based on its capabilities, region, product nature, price, customer nature, etc.
Question 16: What is the Basis of Consumer Market Segmentation?
Answer: The basis of consumer market segmentation is as follows:
- Geographic Segmentation
- Demographic Segmentation
- Psychographic Segmentation
- Behavioral Segmentation
Question 17: What is the Basis of Business Market Segmentation?
Answer: The basis of business market segmentation is as follows:
- The geographical location of the buyers.
- The size of the industry or company.
- Expected benefits.
- User Dignity.
- Product usage rate
Question 18: What is Geographic Segmentation?
Answer: Geographical segmentation is the division of an entire market into different segments based on geographical features such as size, terrain, natural resources, weather, and climate.
Question 19: What is Demographic Segmentation?
Answer: When the market is divided into different segments based on different characteristics of the population, it is called demographic segmentation.
Question 20: What are the Considerable Factors for Demographic Segmentation?
Answer: The considerable factors for demographic segmentation are as follows:
- Age and life-cycle stage
- Gender
- Family size
- Family life cycle
- Income
- Profession
- Education
- Religion
Question 21: What is Psychographic Segmentation?
Answer: Psychographic segmentation is the division of a market based on the psychological differences of different individuals in a population.
Question 22: What are the Considerable Factors for Psychographic Segmentation?
Answer: The considerable factors for psychographic segmentation are as follows:
- Social class
- Lifestyle
- Personality
Question 23: What is Behavioral Segmentation?
Answer: When the market is divided into different categories based on the knowledge, attitude, product use, or response of the buyers, it is called behavioral segmentation.
Question 24: What are the Considerable Factors for Behavioral Segmentation?
Answer: The considerable factors for behavioral segmentation are as follows:
- Occasions
- Expected benefit
- User status
- Usage rate
- Loyalty status
Question 25: What are the Considerable Factors for Effective Market Segmentation?
Answer: The considerable factors for effective market segmentation are as follows:
- The market segment should be measurable in terms of size, the purchasing power of buyers, and segmentation characteristics.
- There must be accessibility for the implementation of marketing programs and delivery of products in specific departments.
- The activities of the market department need to be manageable and profitable.
- The market needs to be divided in such a way that the distinctive features of the subdivisions exist.
- Market segmentation requires consideration of whether the organization has the capacity to attract or serve customers in sub-markets or subdivisions.
I hope that by the end of this post, you have a good understanding of the “Market Segmentation” chapter.
You will gain a better understanding of the “Market segmentation” chapter if you read these 25 important market segmentation questions and answers on a regular basis.
You can also read:
- 25 Important Marketing Mix Questions & Answers [With PDF]
- 35 Important Product Distribution Channel Questions and Answers [With PDF]
