A firm with rather restricted resources is able to compete with much larger organizations. D. Differentiated targeting strategy is a strategy in which an organization targets two or more segments by developing a marketing mix for each segment. A business can increase its sales in a total market by focusing on more than one segment. Several distinct promotion plans and distribution methods are required, resulting in higher marketing costs. Determine which segmentation variables to use A. Segmentation variables are characteristics of individuals, groups, or organizations that are used for dividing a total market into segments.
Marketers consider the following factors when choosing segmentation variables.
1.The segmentation variable should be related to customers' needs for, uses of, or behavior toward the product. 2.The variable must be measurable. 3.The company's resources and capabilities determine the number and size of segment variables. 4.Choice of segmentation variables is a critical step because an inappropriate variable limits the chances of developing a successful marketing strategy. Those commonly used by marketers include age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and social class.