Reading Report 2 Read The Segmented Marketing Pages

READING REPORT 2 Name Institution Date
READING REPORT 2   WRITTEN COMPONENT   PART I—QUESTIONS Instructions: Read the Segmented Marketing pages 34 – 46 (Uploaded to Moodle); Answer the questions below, and then submit your answers to turnitin.com (31 marks)    1)      Define market segmentation. (2 marks)    Market segmentation is placing the consumers into different groups to analyze and identify the profiles of these groups into different markets for products and services and this influences the marketing strategies.     2)      Contrast the two market segmentation strategies – concentration strategy and the multi-segment strategy. What are the advantages and disadvantages of these approaches? Note: this can be written in one paragraph. (4 marks)     The concentration strategy focuses on a single market segment of the market and its objective is to obtain a competitive advantage that firms companies cannot match, becoming the leader of that segment either by cost or by differentiation or both strategies in a specific market segment.  Companies rely on competitive advantages to be more profitable, but the success of the company depends on demand and if this declines so too is the sales revenue. In the multi-segment strategy, the target market is divided into various customer segments, and the firm then utilizes differentiated marketing strategies. The approach is advantageous as there is increased market share and sales in a diversified market as well as customer loyalty in different market. However, there are higher marketing costs and even production in different markets, which may affect profitability.       3)      Name four main factors according to which the market is segmented. (4 marks)   Markets are broadly classified into the geographic segments, demographic segments, usage segments and psychological segments.       4)      Give two examples to illustrate how population density may influence the consumers’ product preferences. (2 marks)   High-density cities like Los Angeles and New York create the need for fast-food restaurants, public transport systems and security systems (Burnett, 2015).  In high income and high-density locations there is likely to be various product options for a large customer base, where products like healthy foods that are more expensive.   5)      What is the main idea of the article, “Seeking the African-American web community” on p. 39? How is this article related to the discussion of market segmentation? (2 marks)   The article highlights the importance of demographics segmentation, where the African-American web community is more affluent and utilises the web for online shopping than the Africa...