META MARKETING ANALYTICS PROFESSIONAL CERTIFICATE
Course 4: Data Analytics Methods for Marketing
Week 1: Find Your Audience with Segmentation
Coursera Study Guide
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CONTENT
In the first week you will learn about the importance of segmentation in marketing and different methods to use segmentation to determine target audiences for your marketing.
Learning Objectives
- Describe the importance of segmentation in marketing
- Understand different segmentation methods used to define a target audience
- Segment a population into different audiences using cluster analysis
- Create descriptions of sub-audiences
PRACTICE QUIZ: SEGMENTATION IN MARKETING
1. Segmentation is…
- A way to sort people in groups based on characteristics they have in common (CORRECT)
- A way to sort people based on unstructured data
- A way to sort people based on what they buy
Correct: That’s correct! Segmentation looks at the data available to break users down into common groups.
2. True or false, segmentation from data analysis is one of the two forms of segmentation.
- True (CORRECT)
- False
Correct: That’s right! The two forms of segmentation are segmentation from a persona and segmentation from data analysis.
3. True or false, psychographic segmentation is the most powerful form of segmentation.
- True
- False (CORRECT)
Correct: That’s correct! There is no one primary segmentation strategy. In fact, the best segmentation strategy contains multiple forms of segmentation, not just one.
4. Which of the following are forms of behavioral segmentation… (Select all that apply)
- Location
- Values
- Product usage (CORRECT)
- Spending habits (CORRECT)
Correct: Yes, that’s correct! Product usage is one part of behavioral segmentation.
Correct: Yes, that’s correct! Spending habits are one part of behavioral segmentation.
5. A contextual targeting vendor understanding the difference between the Miami Dolphins football team and dolphins in the ocean is an example of…
- Semantic understanding (CORRECT)
- One to one personalization
- Wisdom of the Crowd
- Segmentation and targeting
Correct: That’s correct! Semantic understanding uses context to try to understand the meaning of a set of words.
PRACTICE QUIZ: CLUSTER ANALYSIS
1. What is“K” defined as in K-means clustering?
- The distance between two centroids
- The variance of the clusters
- The Euclidean distance between two points
- The number of clusters (CORRECT)
Correct: That’s correct!
2. What is the Euclidean distance between these two points?

- 3.91
- 3.16 (CORRECT)
- 0.25
- 2.93
Correct: That’s correct! We use the Euclidean distance formula to determine it is the square root of 10 which is 3.16 rounded.
3. What is the variance for the following data set: 2,4,5,6,8
- 5
- 8
- 4 (CORRECT)
- 6
Correct: That’s correct! Great job using the variance formula.
4. What does the Dunn Index measure?
- The distance between two points
- Both the tightness of clusters and how far apart clusters are (CORRECT)
- How far apart clusters are
- How tight clusters are
Correct: That’s right! The higher the Dunn index, the stronger your k-means clusters are.
5. When calculating variance for your clusters in k-means clustering, you are looking for the ______ total variance across clusters
- Highest
- Lowest (CORRECT)
Correct: That’s right! The lowest variance tells us this is the most compact the clusters can get.
GRADED QUIZ: SEGMENTATION
1. Which of the following are NOT types of Segmentation? (Choose two)
- Segmentation developed from a persona
- Segmentation developed from data analysis
- Segmentation developed from media (CORRECT)
- Segmentation developed from product-customer fit (CORRECT)
Correct: That’s right! Media consumption may play a part in your persona but this isn’t the full picture.
Correct: That’s right! You may do some research to find out who your persona is, but there’s more to segmentation than just research.
2. Which of the following are kinds of personalization? (Select all that apply)
- Two to one personalization
- Personalization based on segmentation and targeting (CORRECT)
- Personalization based on semantic understanding (CORRECT)
- Personalization based on wisdom of the crowd (CORRECT)
Correct: That’s right! Segmentation and targeting is a kind of personalization.
Correct: That’s right! Semantic understanding is a kind of personalization.
Correct: That’s right! Wisdom of the crowd is a kind of personalization.
3. A CDP is a database that builds a complete picture of your customers on an individual level. True or False?
- False
- True (CORRECT)
Correct: Exactly! CDP or Customer Data Platform helps you understand customers on an individual level.
4. What is the first step in creating a K-means clustering analysis?
- Establish baseline clusters
- Calculate the Euclidean distance between each point and each centroid
- Define K (CORRECT)
- Establish K number of centroids at random
Correct: Exactly! The first step is to define K.
5. The Elbow Criterion finds the number of clusters for which adding an extra cluster would not add sufficient information. True or False?
- False
- True (CORRECT)
Correct: Exactly! This is the definition of the elbow criterion.
6. Profiling Clusters does NOT do which of the following?
- Describe what makes people in a cluster similar to each other.
- Describe what makes people from different clusters different.
- Describe what makes people in a cluster similar to each other and what makes people from different clusters different.
- None of these answers. (CORRECT)
Correct: Exactly! These are all things that Profiling Clusters does.
7. Segmentation helps you find the correct audience and reach them with the right message. True or False?
- True (CORRECT)
- False
Correct: Exactly! This is the purpose of segmentation.
8. The four segmentation variables commonly used in marketing are…
- Psychographic, infographic, demographic, and behavioral
- Psychographic, infographic, geographic, and media consumption
- Psychographic, media consumption, behavioral, and geographic
- Psychographic, demographic, behavioral, and geographic (CORRECT)
Correct: Correct! These are the four segmentation variables.
9. Values, Motivations, and Beliefs are examples of what kind of segmentation variable?
- Infographic
- Psychographic (CORRECT)
- Geographic
- Behavioral
Correct: Exactly! These are examples of Psychographic variables.
10. What does clustering do?
- Groups similar data points together
- Puts dissimilar things in different groups
- Segments your data
- All of these are true (CORRECT)
Correct: Exactly! All of these are aspects of clustering.
11. Which of the following is NOT a kind of personalization?
- Personalization based on systematic understanding (CORRECT)
- Personalization based on wisdom of the crowd
- One to one personalization
- Personalization based on segmentation and targeting
Correct: That’s right! Systematic understanding is not a kind of personalization.
12. What is a CDP?
- A database that builds a complete picture of your customers on a regional level
- A database that builds a complete picture of your customers as a whole
- A database that builds a complete picture of your customers on a national level
- A database that builds a complete picture of your customers on an individual level (CORRECT)
Correct: Exactly! CDP or Customer Data Platform helps you understand customers on an individual level.
13. The Elbow Criterion is used for…
- identifying points of change in trend analysis
- determining the number of iterations you should use while creating clusters
- determining the number of clusters to use for an analysis (CORRECT)
Correct: Exactly! The Elbow Criterion is used to determine the number of clusters to use for an analysis.
14. What do you focus on when profiling clusters?
- Describing what makes people in a cluster similar to each other
- Describing what makes people from different clusters different
- Describing what makes people in a cluster similar to each other and what makes people from different clusters different (CORRECT)
- None of these answers
Correct: Exactly! Profiling Clusters describe the similarities between individuals in the same cluster and the differences to individuals in different clusters.
15. Location, Population Density, and Climate are examples of what kind of segmentation variable?
- Psychographic
- Geographic (CORRECT)
- Behavioral
- Infographic
Correct: Exactly! These are examples of Geographic variables.
16. What kind of analysis is best for segmentation?
- Time Series
- Clustering (CORRECT)
- Classification
- Linear Regression
Correct: Exactly! Clustering is the ideal approach to segmentation.
17. What does CDP stand for?
- Customer Data Platform (CORRECT)
- Client Data Point
- Common Data Position
- Consumer Data Pool
Correct: Exactly! CDP stands for Customer Data Platform.
18. Psychographic, demographic, behavioral, and geographic are the four commonly used segmentation variables in marketing. True or False?
- True (CORRECT)
- False
Correct: Feedback: Exactly! These are the four segmentation variables commonly used in marketing.
19. Product Usage, Spending Habits, and Media Consumption are examples of what kind of segmentation variable?
- Psychographic
- Infographic
- Behavioral (CORRECT)
- Geographic
Correct: Exactly! These are examples of Behavioral variables.
20. Cluster Analysis is the most common analytical approach used for segmentation. True or False?
- True (CORRECT)
- False
Correct: Exactly! Clustering is the most common analytical approach to segmentation.
21. The two forms of segmentation are developed from a persona and developed from data analysis. True or False
- True (CORRECT)
- False
Correct: That’s right! Segmentation from a persona and data analysis are the major forms of segmentation.
22. The first step in creating a K-means clustering analysis is to Validate the data. True or False?
- True
- False (CORRECT)
Correct: Exactly! The first step in creating a K-means clustering analysis is to Define K.
23. True or False: One to Two is a kind of personalization.
- True
- False (CORRECT)
Correct: That’s right! One to one is a kind of personalization, but one to two is not.
24. What is the last step in creating a K-means clustering analysis?
- Validate the data (CORRECT)
- Establish baseline clusters
- Establish K number of centroids at random
- Calculate the Euclidean distance between each point and each centroid
Correct: Exactly! The last step is to validate the data.
25. Segmentation is important because…
- It helps the audience know us better
- It helps the audience understand us as individuals
- It helps us know our audience better (CORRECT)
- It helps us know specific information about individual customers
Correct: Exactly! This is the purpose of segmentation.
26. What are the two forms of Segmentation? (Choose two)
- Segmentation developed from media
- Segmentation developed from product-customer fit
- Segmentation developed from a persona (CORRECT)
- Segmentation developed from data analysis (CORRECT)
Correct: That’s right! We can develop segmentation from a persona and choose variables that align with our persona.
Correct: That’s right! We can do different forms of statistical analysis to discover our segmentation.
27. Segmentation does not…
- Help us understand our audience
- Helps us set up campaigns in our audience buying platforms.
- Help us target the whole world (CORRECT)
- Help us reach the right users with our media
Correct: Exactly! This defeats the purpose of segmentation.
29. Which of the following is a segmentation variable commonly used in marketing?
- Infographic
- Photographic
- Media Consumption
- Demographic (CORRECT)
Correct: Exactly! Demographic is one of the segmentation variables.
30. Profiling Clusters means only describing what makes people within a cluster similar to each other. True or False?
- True
- False (CORRECT)
Correct: Exactly! This is only part of what you do when profiling clusters. It also involves describing what makes people different from people in other clusters
31. Which principle can you use to decide on the number of clusters for your analysis?
- Iterate on the number of clusters
- The elbow criterion (CORRECT)
- Choose as many clusters as you can.
Correct: That is correct. This criterion helps to find the number of clusters for which adding an additional cluster would not give you sufficient additional information.
32. The two forms of segmentation are… (Choose two)
- Segmentation developed from the media
- Segmentation developed from research
- Segmentation developed from data analysis (CORRECT)
- Segmentation developed from a persona (CORRECT)
Correct: That’s right! We can develop segmentation from a persona and choose variables that align with our persona.
Correct: That’s right! We can do different forms of statistical analysis to discover our segmentation.
33. The four segmentation variables are…
- Psychographic, media consumption, behavioral, and geographic
- Psychographic, infographic, demographic, and behavioral
- Psychographic, demographic, behavioral, and geographic (CORRECT)
- Psychographic, infographic, geographic, and media consumption
Correct: That’s right! These are the four variables to consider when doing a segmentation analysis.
34. Which of the following is NOT a form of personalization?
- Semantic understanding
- One to one personalization
- Qualitative understanding (CORRECT)
- Wisdom of the crowd
Correct: That’s right. While we do want a qualitative understanding of our audience, that’s only one element of segmentation and personalization.
35. What is the purpose of clustering?
- Finding trends over time in purchase data
- Finding similarities in the data, and grouping data points by these similarities. (CORRECT)
- Finding the median of a data set in order to create clusters.
- Finding the average of data sets in order to create cohorts.
Correct: That’s right! We use clustering to group data sets by similarity.
36. What is step 3 of the k-means clustering process, after establishing K number of centroids?
- Calculate the Dunn Index for clusters
- Find the mean of each new cluster to establish a new centroid
- Calculate the Euclidean distance between each point and each centroid (CORRECT)
- Calculate the variance for each cluster
Correct: That’s right, we need to know how far each point is from each centroid to establish baseline clusters.
37. Which principle can you use to decide on the number of clusters for your analysis?
- Choose as many clusters as you can
- The elbow criterion (CORRECT)
- Iterate on the number of clusters
Correct: That is correct. This criterion helps to find the number of clusters for which adding an additional cluster would not give you sufficient additional information.
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