Segmentation
The focus of this lesson
Understanding market segmentation
Short presentation
Activity in small groups
Feedback results to whole group
Quick Quiz
Segmentation
Market Segmentation
Segmentation
Market Segments are…
A group of customers within a market who
have certain things in common
Segmentation
In what ways could you group people into
different segments in the UK ?
Example: By Age
Segmentation
Age
Religion
Ethnic background
Gender
Household income
Lifestyle
Purchasing behaviour
Geographical region
Social class
Socio – economic group ?
Segmentation
Socio – Economic group?
Institute of Practitioners in Advertising (IPA)
A – Higher managerial professional
B – Middle management professional
C1 – Supervisory, Junior management
C2 – Skilled manual worker
D – Unskilled manual worker
E – Pensioners or Unemployed
Segmentation
Broad areas of segmentation
Geographic – Segment by geographical area –
Nationally, locally, regionally.
Demographic – Segment by population
characteristics – Age, Gender etc
Behavioural – Segment by purchasing
behaviour
Psychographic – segment according to social
class belief / lifestyle factors
Segmentation
Geographic
Region
Urban / Rural
Demographic
Age
Gender
Socio - economic
Psychographic
Lifestyle
Personality
Behavioural
Rate of use
Loyalty
Segmentation
Why segment?
Enables better understanding of customer
needs
Helps you match your product features &
benefits to those of the customer
Leading to you gaining a competitive
advantage over the competition
Allows you to focus your promotional
strategies better
Stops you wasting money
Segmentation
Segmentation enables you to
target customers better
Segmentation
Consumer products – Products that people need
for everyday life
Lifestyle products – Products that people
choose to fit with their lifestyle
Business to Business products – products
aimed at Businesses
Segmentation
In groups come up with
examples
Products can be:
Consumer products -
Lifestyle products -
Business to Business products -
Segmentation
Targeting different segments
SEGMENT 1
Supplier A
SEGMENT 2
SEGMENT 3
Single product aimed at the mass
market - UNDIFFERENTIATED
SEGMENT 4
SEGMENT 5
SEGMENT 6
Segmentation
IN groups come up
with an example of a
Product that is aimed
at everybody (all
segments)
Segmentation
Targeting different segments
SEGMENT 1
Supplier A
SEGMENT 2
SEGMENT 3
Single product aimed at one
segment – FOCUSSED (Niche)
SEGMENT 4
SEGMENT 5
SEGMENT 6
Segmentation
IN groups come up
with an example of a
Product that is aimed
at one segment
Segmentation
Targeting different segments
Product A
Supplier A
Product B
Product C
SEGMENT 1
SEGMENT 2
SEGMENT 3
SEGMENT 4
SEGMENT 5
SEGMENT 6
Multiple products aimed at different
segments - DIFFERENTIATED
Segmentation
IN groups come up
with an example of
a company that
aims at many
segments