Marketing

Week 4

Market Segment

the process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs

Target Marketing

a specific marketing approach aimed a group of customers instead of the entire customer base

How to Segment

Segmentation Usefulness

M - Measureable

A - Accessible

D - Diffentiable

A - Actionable

S - Substantial

Segmentation Groups

Geographical

• Region

• City size

• Density

• Climate

Demographic

• Age

• Sex

• Family size

• Income

• Occupation

• Education

• Religion

• Nationality

Psychographic

• Socioeconomic

• Status

• Values

• Lifestyle

• Personality

Behavioural

• Purchase occasion

• Benefits sought

• User status

• Usage rate

• Loyalty

• Readiness

• Attitude to product

Segment evaluation criteria

The fit with the brand's identity/positioning - Does the product/service match with what the company normally offers

Company objectives and resources - The degree to which the segment matches the brand + sub-brand’s resources and objectives

Size and growth - Does the resources of the company match the action, do we have enough money to target low margin segments or is the opposite

Structural attractiveness - Just because the segment looks promising, is there any sound data to say we can pull it off, or for example, are there too many strong competitiors that control the market already.

Creating/Getting to know your persona