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Chapter3 1.Competinginthe single Europeanmarketraisessome interestingmarketsegmentquestions.
Discussthe segmentationissuesregardingthismultiple countrymarket?There are distinctdifferencesin
preferencesandtastesbetweenthe people intheparticipatingcountries.Segmentationmaytake two
forms.For productswherecustomerdifferencesare significantsegmentationwithincountryboundaries
maybe importanttogainingcompetitive advantage.Productsthatdisplaystrongnationaldifferences
may require withincountrysegmentation.Forotherproducts(e.g.,airline services),Pan–European
segmentationmaybe appropriate.Someauthoritiesbelievethatpreferencesmaybecome more similar
betweenconsumersovertime.However,theseshiftswill require severalyearstodevelop.(Cravens,
Piercy;pg.91-93)2.Why are there marketingstrategyadvantagesinusingdemographiccharacteristicsto
breakout productmarketsintosegments?Demographicsare oftenmore useful todescribe consumer
segmentsaftertheyhavebeenformedratherthanidentifythem.Buttheymayassistinidentifying
potentialtargetedniches.Nonetheless,thesevariablesare popularbecause available dataoftenrelate
demographicstothe othersegmentationvariables.Logical segmentsarefairlyeasy tosee asthe
demographicdate isclearlydelineated.One significantadvantage isthatthe demographicinformationis
readilyavailable throughavarietyof publishedsources,thusmakingitrelativelyinexpensive.
Demographicvariablesdescribe buyersaccordingtotheirage,income,education,occupationandmany
othercharacteristics.Demographicsinformationhelpstodescribe groupsof buyerssuchasheavyusers
of a productor brand. Demographicsusedincombinationwithbuyerbehaviorinformationare useful in
segmentingmarkets,selectingdistributionchannels,designingpromotionstrategies,andotherdecisions
on marketstrategy.(Cravens,Piercy;pg.79-80)3. The real testof a segmentformationschemeoccurs
afterit has beentriedandtheresultsevaluated.Are therewaystoevaluate alternativesegmenting
schemes

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2.2.doc

  • 1. Chapter3 1.Competinginthe single Europeanmarketraisessome interestingmarketsegmentquestions. Discussthe segmentationissuesregardingthismultiple countrymarket?There are distinctdifferencesin preferencesandtastesbetweenthe people intheparticipatingcountries.Segmentationmaytake two forms.For productswherecustomerdifferencesare significantsegmentationwithincountryboundaries maybe importanttogainingcompetitive advantage.Productsthatdisplaystrongnationaldifferences may require withincountrysegmentation.Forotherproducts(e.g.,airline services),Pan–European segmentationmaybe appropriate.Someauthoritiesbelievethatpreferencesmaybecome more similar betweenconsumersovertime.However,theseshiftswill require severalyearstodevelop.(Cravens, Piercy;pg.91-93)2.Why are there marketingstrategyadvantagesinusingdemographiccharacteristicsto breakout productmarketsintosegments?Demographicsare oftenmore useful todescribe consumer segmentsaftertheyhavebeenformedratherthanidentifythem.Buttheymayassistinidentifying potentialtargetedniches.Nonetheless,thesevariablesare popularbecause available dataoftenrelate demographicstothe othersegmentationvariables.Logical segmentsarefairlyeasy tosee asthe demographicdate isclearlydelineated.One significantadvantage isthatthe demographicinformationis readilyavailable throughavarietyof publishedsources,thusmakingitrelativelyinexpensive. Demographicvariablesdescribe buyersaccordingtotheirage,income,education,occupationandmany othercharacteristics.Demographicsinformationhelpstodescribe groupsof buyerssuchasheavyusers of a productor brand. Demographicsusedincombinationwithbuyerbehaviorinformationare useful in segmentingmarkets,selectingdistributionchannels,designingpromotionstrategies,andotherdecisions on marketstrategy.(Cravens,Piercy;pg.79-80)3. The real testof a segmentformationschemeoccurs afterit has beentriedandtheresultsevaluated.Are therewaystoevaluate alternativesegmenting schemes