Market Segmentation

Marketing Segmentation

Slides by Jilian MolokwuProfessor Dominic Feroce

Principles of Marketing2015

What is Marketing Segmentation?

Market segmentation is a marketing strategy which involves dividing a broad target market into sub-categories of consumers, businesses, or countries who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.

What are some types of market segmentation?

● Geographic segmentation separates a market into different geographical

boundaries which can impact the marketing mix of product, price,

promotion and channel to market.

● Demographic segmentation separates a market by demographic

indicators including gender, age, household type, education level and

income.

● Psychographic segmentation separates a market by lifestyle as well as

values and beliefs.

● Behavioral segmentation separates a market by shopping and buying

behaviors.

Geographic Segmentation

● Continent● Country● State● Region● Weather/Climate

Demographic Segmentation

● age● gender● income● occupation● education● household (family)

Psychological Segmentation

● social class● lifestyle ● personality● opinions

Behavioral Segmentation

● occasions● benefits● user status● loyalty status

Benefits of Segmentation

● creates value for a target market

● helps marketers gain focus

● effective use of resources

4 Characteristics of Effective Segmentation

Measurable-size, purchasing power, profiles of

segmentationAccessible-Segments can be effectively reached and

served

cont’d...

Substantial-segments are large or profitable enough to

serveActionable-effective programs can be designed to

attract and serve the segments