Chapter 4
Market Segmentation and
Target Marketing
Criteria for Segmentation




Identifiable
Measurable
Adequate size
Accessible
Types of Segments

Geographic
– Political
– Census
U.S. Census Regions
New England
Middle Atlantic
South Atlantic
East North Central
East South Central
West North Central
West South Central
Mountain
Pacific
Types of Segments

Geographic
– Political
– Census
– Postal Zones
– Media Coverage
• Area of dominant influence (ADI)
Types of Segments

Demographic
– Age
– Gender
– Family size
– Income
– Ethnic background

Psychographic
– AIO
Psychographics
Activities
Interests
Opinions
Work
Hobbies
Social events
Vacation
Entertainment
Clubs
Community
Shopping
Sports
Family
Home
Job
Community
Recreation
Fashion
Food
Media
Achievements
Themselves
Social issues
Politics
Business
Economics
Education
Products
Future
Culture
VAL 2 (Value and Lifestyle)
Self-Orientation
High
PrincipleOriented
StatusOriented
ActionOriented
Actualizers
Resources Fulfillers
Believers
Achievers
Experiencers
Strivers
Makers
Strugglers
Low
Types of Segments

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
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
Geographic
Demographic
Psychographic
Benefit
Behavioral
Behavior Segmentation



User status
Usage frequency
Usage occasion
– When
– How
– Why
Midmorning
Lunch
Midafternoon
Dinner
Late evening
1a
11
5
11
9
11
Carry-out
2
12
6
12
Delivery
Dine-in
3
7
Carry-out
4
8
Delivery
a.
12 Weekday
rank order of importance
10
Weekend
Time of week
Breakfast
Dine-in
Snack/meal
Occasion
Where food is consumed
Segmentation Matrix
Geodemographic Segmentation

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

ACORN
ClusterPLUS 2000
MicroVision 50
PRIZM
Census Demographics
and Demographic
Updates
Social
rank
Household composition
Housing
Ethnicity
Urbanization
Mobility
Neighborhood
Geography
Census
tracts
Block groups
Zip codes (9-digit)
Carrier routes
DATA ANALYSIS
PRIZM Lifestyle Clusters
Consumer Behavior
Data
Automobiles
owned
Magazine readership
Direct marketing data
Real estate
Credit
Expenditures
Buying Center Member Roles

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
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Users
Influencers
Buyers
Deciders
Gatekeepers
Lodging Organizational
Customer Segments


Individual business travelers
Group markets
–
–
–
–

Corporate meetings
Business and professional associations
Group tours
Incentive travel
Other organizational markets
– Airline crews
– Government
– SMERF
Contract Foodservice
Organizational Customers





Business and industry
Colleges and universities
Schools
Health care facilities
Other institutional segments