Market Segmentation

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Market Segmentation

• Dividing the market into small, manageable
  segments.

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Describe This Customer
Watches a lot of late night tv
Loves to eat snack foods
Shops at discount stores for clothing food
Drinks generic coffee morning and evening
Bowls with buddies on Tuesday nights
3
Market Segmentation

• A way of analyzing a market by specific
  characteristics in order to create a target
  market.
• A business can customize its product offering and
  marketing mix to that target market.
• Businesses may segment a market by demographics,
  psychographics, geographics, and product benefits.

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Demographics

• Refers to statistics that describe a population
  in terms of personal characteristics
• These include age, gender, income, ethnic
  background, education and occupation.

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Age Breakdown
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Psychographics

• Involves studies of consumers based on social and
  psychological characteristics.
• Includes peoples attitudes, values, and
  lifestyles.
• People who share common interests usually have
  similar attitudes.

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Geographics

• Refers to segmentation of the market based on
  where people live.
• You can refer to local, regional, national, or
  even global markets.
• Marketers study where their customers live in
  order to decide which media to use and where to
  market their products.
• Marketers also study geographics in relation to
  ethnic concentrations.

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Product Benefits

• Segmenting a market by product benefits involves
  studying consumers behaviors, needs, and wants.
• Companies market benefits, not simply the
  physical characteristics of a product.

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Describe this Market Segment
Look at the image and write down five types of
products or services you think that these people
might buy.
10
We are targeting women under the age of 40 This
is an example of

• A. geographics
• B. demographics
• C. psychographics
• D. product benefits

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We are targeting consumers with oily hair. This
is an example of

• A. geographics
• B. demographics
• C. psychographics
• D. product benefits

12
Our target market is people who live near
beaches. This is an example of

• A. geographics
• B. demographics
• C. psychographics
• D. product benefits

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Describe This Target Market
Look at the image and write down five types of
products or services you think that this person
might buy.
14
Describe This Target Market
Look at the image and write down five types of
products or services you think that this person
might buy.
15
Describe This Target Market
Look at the image and write down five types of
products or services you think that this person
might buy.
16
Describe This Target Market
Look at the image and write down five types of
products or services you think that this person
might buy.
17
Describe This Target Market
Young Mother
Look at the image and write down five types of
products or services you think that this person
might buy.
18
Describe This Target Market
Look at the image and write down five types of
products or services you think that these people
might buy.