Marketing Final

Market segmentation

Dividing the market into smaller and

homogeneous customer groups who respond

similarly to marketing strategies

Bases of segmentation   

 Demographic, geographic, psychographic, and behavioral factors.

 Geographic segmentation

 Dividing the market into homogeneous groups based on

LOCATION or ENVIRONMENT (country region city)

Demographic 

Divided market based on personal characteristics 

-Gender 

-Age 

-Income 

Psychographic segmentation

Dividing the market into groups based on similar

psychological characteristics: shared attitudes, values,

personality, and lifestyles

• Provides rich descriptions (greater details) of target

markets

Behavioral Segmentation

- Dividing a consumer population into homogeneous groups based

on their knowledge, attitude, use, or response to a PRODUCT

(BEHAVIORS RELATED TO “PRODUCT”)

- Purchase occasion: time of day (morning, night), holiday (X-mas,

Mother’s Day, Father’s Day)

- Benefits: what people seek when they buy: bleaching vs. scented

detergent; casual runners, serious runners

- User status: non-user, ex-user, potential user, regular user

 -Usage rates: for a product: light, medium, heavy

- Loyalty toward a brand/product: completely, somewhat, not at all

Why Multiple Segmentation Bases?

Using multiple segmentation bases can increase ACCURACY in

reaching the right markets

• Benefit to the company

– Increase customer satisfaction, identify unfulfilled needs, and

sustainable profit growth

• Benefit to the customers

– Tailored products and services, personalized experience,

convenience and time savings

What is a brand?

A name, term, or design that identifies the products of a firm while differentiating it from the competitors

Symbolic Device

Represents self, cultural relationships

Line Extension 

Introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).

Brand Extention

An application of an existing popular brand name to a new product in an unrelated product category- name only

Mulitbrands

Introducing different brand names in the same product category