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market segmentation
occurs when the market is split up into subgroups of consumers with similar characteristics
why is market segmentation useful
helps to identify different types of consumer and different wants and needs
segmentation methods include …
demographics
income
geographics
behavioural
what identities come under demographics ?
age
race
religion
level of education
gender
family sie
stage in life (e.g. empty nesters)
geographic segmentation
defines market categories based on where people live e.g. region, cities
income segmentation
market based on levels of income and profession
socio-economic grouping …
A - higher managerial such as chief executies and directors
B - intermediate managerial such as solicitors, accountants and doctors
C1 - supervisory, clerical or junior professsional such as teachers and junior managers
C2 - skilled manual such as plumbers, electricians, carpenters
D - semi and unskilled workers such as refuse collectors and window cleaners
E — pensioners, casual workers, students, unemployed
behavioural segmentation
behavioural patterns of the consumer rather than their characteristics
examples of behavioural segmentation
reasons for making purchases
frequency of purchase
time of purchase
ect
benefits of market segmentation
advertising can be targeted at specific segments so its more effective
most profitable and least profitable customers can be identified
least profitable markets can be avoided
easier to identify new products
helps firm improve existing products
drawbacks of market segmentation
increasd costs linked to research and product development
additional market activities required as the business targets mmore segments
potential for brand to lose its identity
less able to exploit economies of scale
Note 
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