2 market segmentation

Market SegmentationTarget Marketing

Market Positioning

Customer Base

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Market SegmentationDividing a market into different groupsEach group has different needs/wants Segments may require different products or

same product with different featuresOpposite to ‘mass marketing’

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Market SegmentationGrouping people with similar needs and

wants together for the purpose of serving them better

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A Market SegmentA group of people with similar needs who

are likely to respond to a particular product/service in a similar way

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How do we Segment markets?

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Geographic SegmentationRegionPopulation Density or City SizeCountryClimate

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Demographic SegmentationAgeGenderFamily sizeFamily life cycleIncomeOccupationEducationNationalityRaceReligion

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Psychographic SegmentationSocial classCultureLifestylePersonality

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Behavioural SegmentationPurchase occasionBenefits soughtUser statusUsage rateLoyalty statusReadiness stageAttitude toward product

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Selecting Market SegmentsMeasurable?Size and growth potential?Accessible?Fit with company objectives/resources?Competition?

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Target MarketThe market segments that an organisation

‘aims at’ with its Products or Services

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Target Marketing Strategies

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PositioningGiving your products a clearly-defined

position in the market, compared to competing products, in the minds of your target market.

In other words, how the customer sees your product

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Lesson Summary

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