TN ST. 3 Identify and describe characteristics of
classifications of market segmentation.
» What is the marketing mix?
» The process of classifying people who form a
given market into even smaller groups.
» Let’s look at the market for jeans.
» You may ask, “Who buys jeans? At what price?
What special features do they want?”
» Depending on your answers, the market for
jeans could be SEGMENTED by these
characteristics:
˃ AGE
˃ PRICE
˃ DESIRED FEATURE
» To meet the needs of the different market
segments, jeans manufacturers develop a
unique marketing mix.
» This could be by PRODUCT, by PROMOTION, by
STORES FOR DISTRIBUTION, by PRICE POINTS.
» The next question marketers ask is “Which of
these segments should we target?”
» Why should we spend the time to segment a
market?
» “Businesses look for ways to connect with
current and potential customers. The surest
way to make that connection is to know
these people well.”
» What sources do you think marketers use to
find data for their research?
˃
˃
˃
˃
Governments
Private Research Firms
Trade Associations
Their own research……?
» “Businesses need to connect with
current and potential customers”
» Demographics- refer to statistics that describe a
population in terms of personal characteristics
such as:
˃
˃
˃
˃
˃
˃
˃
Age
Gender
Income (Disposable vs. Discretionary)
Marital Status
Ethnic background
Education
Occupation
» You Try It!
» Geographic- refers to segmentation of the
market based on where people live.
˃
˃
˃
˃
˃
Local
State
Regional
National
Global
» Geographic Segmentation can include
population density and climate.
˃ Urban vs. Suburban
˃ Warm vs. Cold
» You Try It!
» Psychographics- involves grouping people with
similar attitudes, interests, and opinions, as well
as lifestyles and shared values.
» This lets marketers learn more about a group’s
personality and motivation.
» Attitudes- Created by changing times and
personal experiences.
» Interests & Activities- People who often share
common interests and activities often purchase
similar products & services.
» Personalities & Values
˃ Maslov’s hierarchy of needs
˃ VAL’s - identifies types of consumers based on their motivations
(thinkers, achievers, experiencers, believers, strivers, and makers) AND
resources (innovators vs. survivors)
» You can segment by purchasing-related
behavior.
» This involves analyzing your customers with
regard to sales generated, shopping patterns,
and purchase decision-making processes.
» The 80/20 rule:
˃ 80% of a company’s sales are generated by 20% of its loyal customers.
» Complete your customer profile for yourself.
» At the top of the paper, write your name in all
capital letters.
» Create sections for each type of segmentation.
» In addition to demographic, geographic, and
psychographic information answer the following
question:
˃ What type of advertisements do you enjoy?
» Explain how market segmentation can help a
company increase its market share.
Demographics
Geographics
Psychographics
Age
Local
Attitudes
Gender
State
Lifestyles
Income Level
Regional
Interest
Marital Status
National
Opinions
Education
Global
Shared Values
Occupation
Climate
Ethnic Background
Population