Market Segmentation
How are customers similar
Common Human Desires
Survival: Live a long
and healthy life
Protection: Safety,
care and protection
for yourself and
loved ones
Freedom: Freedom
from danger, fear
and pain
Comfort:
Comfortable living
conditions
Pleasure: Enjoy
food, beverages and
experiences
Relationships:
Companionship and
compatibility
Success: To be
superior, winning,
keeping up with the
Joneses
Likability: Social
approval, being part
of the “in” crowd
Common Learned Behaviors
Efficiency:
Maximum
productivity with
minimal effort
Convenience:
Saving money,
time or effort
Dependability and
Quality: Higher
standards and
reliability
Cleanliness: Clean
body and
surroundings
Beauty and Style:
Expressing
yourself, pleasing
the senses
Intelligence: To be
informed,
understanding and
intellectual
Curiosity: A strong
desire to learn and
discover
Profit: Buying and
selling for profit or
making something
for profit
Bargains:
Purchasing
something below
retail value
Recent Common Market Trends
Scarcity: If something is difficult to possess or we’re told we can’t have it, we want it more and
attribute a higher value to it. Something is more valuable if it might get taken away.
Values: We purchase products that align with our personal values. We buy products because
they are made in the USA, sales are donated to charities, or to support a local business.
Individuality: The desire to stand out from the crowd, to be different. It can take many forms – to
be first in the know, to create something viral, to have something before anyone else does. (I call
this the “hipster effect,” named after the subculture of independent, counter-culture youths who
eschew mainstream ideas and thrive on discovering new things before anyone else.)
Segmenting
a Market
Ways of Segmenting
Descriptive
Behavioral
Descriptive
Geographic
• Region
• Location
• Climate
Demographic
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Age
Gender
Income
Education
Social class
Psychographic
• VALS
Psychographic
VALS Framework
Resources
• Income
• Education
• Self-confidence
• Intelligence
Behavioral
Needs and
benefits
Users and
usage
Readiness
to buy
Loyalty
Benefits desired from toothpaste
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Fresh breath
Cleanliness / hygiene
Strong teeth
Attractive smile
Prevent tooth/gum disease
Improve teeth health - sensitivity
Targeting Approaches
Mass Market
Full market
Multiple
segments
Single
segment
Individualized
Customisation
Nike segments
Users and Usage – Buying roles
Decider
Influencer
Initiator
Buyer
Buying
roles
User
Users and Usage – Brand funnel
Loyalty
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Hard-core
Split loyals
Shifting loyals
Switchers