SEGMENTATION

Geographic Segmentation

Marketers analyze customer information based on physical location to target specific areas, like selling winter clothes in colder regions.

Demographic Segmentation

Focuses on population characteristics such as age, gender, and income level to tailor products, like offering different styles for teens and adults.

Psychographic Segmentation

Considers personalities, values, and lifestyles to understand customer preferences, like targeting sports car enthusiasts who value status and excitement.

Behavioural Segmentation

Examines customer behavior towards products and services, including purchase frequency and benefits sought, to customize marketing strategies.

Market Segmentation Evaluation

Involves assessing segment size, growth, and structural attractiveness to determine the most profitable and competitive segments for targeting.

Company’s Objectives and Resources

Considers if a company's skills and resources align with segment objectives, ensuring investments match long-term goals, like investing in advertising to increase market share.

Undifferentiated (Mass) Marketing

Targets the entire market with a single offer, assuming uniform market tastes, aiming for economies of scale through mass production, distribution, and promotion.

Differentiated (Segmented) Marketing

Targets multiple market segments with unique strategies tailored to each group's needs, involving higher costs but offering customization and potential cannibalization risks.

Concentrated (Niche) Marketing

Focuses on dominating one or two segments by understanding their needs better than competitors, suitable for firms with limited resources to compete effectively.

Micro Marketing

Personalizes marketing by understanding individual customer preferences, offering personalized recommendations and targeted promotions to build customer loyalty.