Introduction to Market Segmentation 1982

8/2/2019 Introduction to Market Segmentation 1982

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MarketSegmentationRaymund Sanchez


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Content of the Lesson Definition of segmentation

Purpose of segmentation

Types of segmentation

Segmentation process

Levels of segmentation


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Definition A market segment is a subgroup of people or

organizations sharing one or morecharacteristics that cause them to have similar

product needs. it is distinct from other segments (heterogeneity

across segments)

it is homogeneous within the segment (exhibits

common attributes) it responds similarly to a market stimuli

it can be reached by a market intervention


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Size, purchasing power, profiles

of segments can be measured.

Segments must be effectivelyreached and served.

Segments must be large orprofitable enough to serve.

Measurable

Accessible

Substantial

Differential

Actionable

Segments must responddifferently to different marketingmix elements & actions.

Must be able to attract and servethe segments.


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Purpose Increase marketing

efficiency by focusing

marketing efforts to aparticular group

Maximize scarcemarketing resources

Find a market withlimited competition

Select the most

profitable segment


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Segmentation Criteria Geographic variables

region of the world or country, East, West,

South, North, Central, coastal, hilly, etc. country size/country size : Metropolitan

Cities, small cities, towns.

Density of Area Urban, Semi-urban, Rural. climate Hot, Cold, Humid, Rainy.
http://en.wikipedia.org/wiki/Geographyhttp://en.wikipedia.org/wiki/Regionhttp://en.wikipedia.org/wiki/Countryhttp://en.wikipedia.org/w/index.php?title=Density_of_Area&action=edit&redlink=1http://en.wikipedia.org/wiki/Climatehttp://en.wikipedia.org/wiki/Climatehttp://en.wikipedia.org/w/index.php?title=Density_of_Area&action=edit&redlink=1http://en.wikipedia.org/wiki/Countryhttp://en.wikipedia.org/wiki/Regionhttp://en.wikipedia.org/wiki/Geography


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Geographic

Demographic

Age, gender,family size and

life cycle, orincome

PsychographicSocial class, lifestyle,

or personality

BehavioralOccasions, benefits,uses, or responses

Nations, states,regions or cities

Segmentation Criteria


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Demographic Criteria Demographic variables

age gender sexual orientation family size

family life cycle education income occupation education socioeconomicstatus

religion nationality/race language
http://en.wikipedia.org/wiki/Demographicshttp://en.wikipedia.org/wiki/Ageinghttp://en.wikipedia.org/wiki/Genderhttp://en.wikipedia.org/wiki/Sexual_orientationhttp://en.wikipedia.org/wiki/Familyhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Incomehttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Socioeconomicshttp://en.wikipedia.org/wiki/Religionhttp://en.wikipedia.org/wiki/Nationalityhttp://en.wikipedia.org/wiki/Race_%28classification_of_human_beings%29http://en.wikipedia.org/wiki/Languagehttp://en.wikipedia.org/wiki/Languagehttp://en.wikipedia.org/wiki/Race_%28classification_of_human_beings%29http://en.wikipedia.org/wiki/Nationalityhttp://en.wikipedia.org/wiki/Religionhttp://en.wikipedia.org/wiki/Socioeconomicshttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Incomehttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Familyhttp://en.wikipedia.org/wiki/Sexual_orientationhttp://en.wikipedia.org/wiki/Genderhttp://en.wikipedia.org/wiki/Ageinghttp://en.wikipedia.org/wiki/Demographics


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Psychographic Criteria Psychographic

variables

personality

life style

value

attitude
http://en.wikipedia.org/wiki/Psychographichttp://en.wiktionary.org/wiki/personalityhttp://en.wikipedia.org/wiki/Life_stylehttp://en.wikipedia.org/wiki/Value_%28personal_and_cultural%29http://en.wikipedia.org/wiki/Attitude_%28psychology%29http://en.wikipedia.org/wiki/Attitude_%28psychology%29http://en.wikipedia.org/wiki/Value_%28personal_and_cultural%29http://en.wikipedia.org/wiki/Life_stylehttp://en.wiktionary.org/wiki/personalityhttp://en.wikipedia.org/wiki/Psychographic


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Behavioral Criteria Behavioralvariables

benefit sought

product usage rate

brand loyalty

product end use

readiness-to-buy stage

decision making unit

profitability

income status
http://en.wikipedia.org/wiki/Behaviorhttp://en.wikipedia.org/w/index.php?title=Product_usage_rate&action=edit&redlink=1http://en.wikipedia.org/wiki/Brand_loyaltyhttp://en.wikipedia.org/w/index.php?title=Product_end_use&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Readiness-to-buy&action=edit&redlink=1http://en.wikipedia.org/wiki/Decision_making_unithttp://en.wikipedia.org/wiki/Profitabilityhttp://en.wikipedia.org/w/index.php?title=Income_status&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Income_status&action=edit&redlink=1http://en.wikipedia.org/wiki/Profitabilityhttp://en.wikipedia.org/wiki/Decision_making_unithttp://en.wikipedia.org/w/index.php?title=Readiness-to-buy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Readiness-to-buy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Readiness-to-buy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Readiness-to-buy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Readiness-to-buy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Product_end_use&action=edit&redlink=1http://en.wikipedia.org/wiki/Brand_loyaltyhttp://en.wikipedia.org/w/index.php?title=Product_usage_rate&action=edit&redlink=1http://en.wikipedia.org/wiki/Behavior


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Market SegmentationProcess1. Determine the characteristics of segments in

the target market & separate these segmentsin the market based on these characteristics.

2. Verify the market segments size if adequateenough to support the organization's product.

3. Develop a marketing strategy to target this

market.


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1. Identify Basesfor Segmenting the Market

2. Develop Profilesof Resulting Segments

3. Develop Measuresof Segment Attractiveness

4. Select TargetSegment(s)

5. Develop Positioningfor Each Target Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

MarketTargeting

Market Segmentation

Market SegmentationProcess


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Mass MarketingSame product to all consumers

(no segmentation)

Segment Marketing

Different products to one or more segments(some segmentation)

MicromarketingProducts to suit the tastes of individuals or locations

(complete segmentation)

Niche MarketingDifferent products to subgroups within segments

( more segmentation)

Levels of Segmentation


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Documents

Introduction to Market Segmentation 1982