# META MARKETING ANALYTICS PROFESSIONAL CERTIFICATE

# Course 4: Data Analytics Methods for Marketing

## Week 1: Find Your Audience with Segmentation

## Coursera Study Guide

Click to Enroll in Coursera Meta Marketing Analytics Professional Certificate

## 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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