MKTG 396 6.1 Segmentation Bases and Overall Strategy

An image of the segmentation process.

The first step of the segmentation process(segmentation phase) is to establish an overall () or ().

Strategy, Objectives

An effective segmentation strategy must be derived from the firm’s (), as well as the internal and external factors listed in a () analysis.

Mission Statement, SWOT

The 2nd step of the segmentation process (segmentation phase), is to divide the market into segments based on (), which are based on geographic, demographic, psychographic, and behavioural categories.

Segmentation Bases

A segmentation base which organizes people based on where they live.

Geographic Segmentation

A segmentation base which organizes people based on their objective, easily measures characteristics(age, gender, income, education, etc).

Demographic Segmentation

Demographics may not always be useful in determining the () market for goods and services, since there may be more to the bigger picture.

Target

A segmentation base which organizes people based on characteristics they select such as their personality or lifestyle. This is also known as how people “self-select”

Psychographics

A component of a person’s psychographic makeup which is the goals which a person has for life.

Self-Values

A component of a person’s psychographic makeup which is the image that people have of themselves.

Self-Concept

Marketers can make use of a person’s self concept by showing individuals who fit that self concept ().

Enjoying Themselves

A component of a person’s psychographic makeup which is the ways a person chooses to live their lives to achieve their goals(self-values).

Lifestyles

A psychological tool developed to classify consumers into 8 segments

Values and Lifestyle Survey(VALS)

A segmentation base which organizes people based on why they buy, how often they buy, and how they plan to use the products they buy.

Behavioural Segmentation

A form of behavioural segmentation which is based on when a product is purchased or consumed.

Occasion Segmentation

A segmentation base which organizes people based on the benefits consumers expect from a good or service.

Benefit Segmentation

Customers which the firm meets so strongly that they don’t consider competitors.

Loyal Customers

A segmentation base which invests in retention and loyalty initiatives to retain the firm’s most profitable customers

Loyalty Segmentation

The () of goods is also a segmentation base.

Usage Rate

A segmentation base which organizes people based on a combination of geographic, demographic, and lifestyle characteristics.

Geodemographic Segmentation