L5 - Segmentation and Target Market

The Consumer

Classify what the potential market is?

Anyone who is interested in the product/service and who have the means to purchase it

Classify what the target market is?

• Group of people that a company wants to reach with its products services

• This group has been identified based on the fact that they have shared characteristics

How do you identify shared characteristics?

Through market segmentation

What is segmentation?

Segmentation is process of dividing up the market into subsets of customers who share common characteristics

How do marketers divide the market to define their ideal customers and describe a customer profile?

Based on Demographics,Geographics,Psychographics and Behaviour

What does demographics compose of?

• Age

• Gender

• Family Life Cycle

• Income

• Education

• Ethnicity and Culture 

What does psychographics compose of?

• Activities

• Interests

• Opinions 

• Values

True or False.

Pyschographics is much harder to measure than demographic or geographic characteristics

True

What does geographics encompass?

• Where they live 

  • Urban

  • Suburban

  • Rural 

Also taking into consideration climate! 

What does behaviour compose of?

• Their purchase behaviour 

• Benefits sought when purchasing something

• How and when this group uses your product

• How often they use your product 

What are the 3 key different terms to identify different consumer groupings’ behaviour?

• Heavy Users

• Non-users

• Medium & Light Users

True or False.

Marketers try to build brand loyalty in this group (heavy users).

True

What kind of segment to often times heavy users fall under?

most lucrative segment

What do marketers do to medium&light users?

Attempt to turn them into heavy users with pricing deals, special contests, informative ads

Who would classify as non-users?

• Those entering the category for the first time

• Those who do not plan on using the products