Q.
a) Elaborate on two (2) bases/variables for property purchasers' market segment. (10 marks)
b) Explain the market-targeting strategies that firms can choose after identifying the best market segment. (15 marks)
(25 marks, 2019 Q4)
A.
Exact repeat of 2014 Q4.
a) Two (2) bases or variables for the segment of purchasers of property.
Similar question was asked in:
2011 Q3
2013 Q4b
2016 Q4a
2017 Q4a
The major bases are:
Demography - Age group - income level
Geographical - Cultural - due to different tradition in different place
Psychological - Inner needs - status, education
Behavioural - Purchase behaviour - how frequent? Emotional
Psychographic - Use situation - functional?
Ref:
Earlier posts.
b) Market-targeting strategies after identifying the best market segment.
Using the bases/variable above, let us choose demography and Behaviour as two bases for segmentation and illustrate the strategies.
Demography - age group of targeted segment - young executives.
Strategy for market reach - electronic media/social marketing, facebook marketing or billboard marketing. Reasons:
- Youngsters are technology savvy.
- Educated in using social media.
- Activities in the city and busy business area - hence billboards.
Behaviour - sports and activity of sports - gym and dance clubs.
Strategy for market reach - sports related activities and sweat clubs, gyms and club memberships. Reasons:
- Sport enthusiasts frequent sports activities. Behavioural.
- Interests are wide and new hobbies. Adventurous.
- Curiosity and image concerned, self-conscious about image.
Hence, products which have market segment identified will need to develop its product characteristics in its marketing strategies to fit into the segment.
See the answer in 2014 Q4b.
Ref:
Earlier posts.