Customer Segmentation

Customer Segmentation

1. Age

   • The demand in products is linked to age as the population of certain products decrease and increase through age. Eg.. Holidays which are in ibiza may be targetted at 20-30 year olds , however a cruise may be targetted at 50 plus.

2. Sex

   • Some products are targeted at a specific gender, for example cosmetic companies usually target their products at women, however recently the demand of male products has increased therefore the cosmetic industry also caters for males.

3. Socio Economic

   • Considering social class and income, done by considering the head of each household. (Thorugh socioeconomic table.. wehther A or e) Uses it o divide social groupings.

4. Lifestyle

   • Classify Consumers according to their individual paterns of expenditure. (How they make purchases, whether they buy products on interet, purchases through debit/credit)

5. Geographic

   • Geodemographic segmentation is done by using economic factors such as where customers live, size of family, type of family.
     • Could use this when planing a location for operations such as pub/ restaurant/ leisure activities. ACORN... A classification of residential neihbourhoods... dividing a neighbourhood into 150 homes.
       • Businesses use this to make judgment about consumers and spending habits.

6. UK POPULATION STRUCTURE

   • The proportion of the total population which falls within different age groups.
     • UK has a ageing population
       • More people are living to an older age. Increase of population falls within the older age bonds. Birth rate is declining. People with higher income can afford to look after their health, increases taxation, goverment can improve healthcare.
         • More economic opportunities as couples tend to develop their career and are less willing to start family in 20's. Changes in population structure affects segmentation of age as the increase of the elder generation means that there will be a higher rate of the retired age group.