Market Segmentation

Market Segmentation

1. What is it?

   • Dividing a market into maller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes

2. Different types of segmentation

   • Geographic
     • Definition
       • Dividing a market into diffetent geographical units, such as nations, states, regon, countries, cities, or even neighborhoods
     • Subdivitions
       • World region or country
         • North America, Canada, Western Europe, Pacific Rim, China, India, Brazil
       • Country Region
         • Pacific, Mountain, West North Central, etc.
       • Citty or metro size
         • Under 5,000; 5,000-20,000; 20,000-50,000; etc.
       • Density
         • Urban, Suburban, Exurban, Rural
       • Climate
         • Northern, Southern
   • Demographic
     • Definition
       • Dividing markets into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality
     • Subdivitions
       • Age and life-cycle satge
         • Dividing a market into different age and life-cycle groups
         • Under 6; 6-11; 12-19; etc.
         • Young, single; Married, No children; married with children; single parents; etc.
       • Gender
         • Dividing a market into different segments based on gender
         • Male, Female
       • Income
         • Dividing a market into different income segments
   • Psychographic
     • Definition
       • Dividing a market into different segments based on social class, lifestyle, or personality characteristics
     • Subdivitions
       • Personality
         • Compulsive, Outgoing, Authoritarian, Ambitious
       • Lifestyle
         • Archievers, Strivers, Survivors
       • Social Class
         • Lower lowers, upper lowers, working class, upper middles, lower uppers, upper uppers
   • Behavioral
     • Definition
       • Dividing markets into segments based on knowledge, attitudes, uses, or responses to a product
     • Subditvitions
       • Occasions
       • Benefits
       • User status
       • User Rates
       • Loyalty status
       • Readiness stage
       • Attitude toward product

3. Multiple Segmentation

   • Using different types of consumer segmentations for the same market
     • Example
       • Geographic and Demographic segmentation

4. Market Targeting

   • Evaluating Market Segments
     • A firm must look at three factors: segment size and gorwth, segment structural attractiveness, and company objectives and resources
   • Selecting Target Market
     • Definition
       • A set of buyers sharing common needs or characteristics that th company decides to seve
     • Undifferentiated Marketing
       • A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer