Avi Chemay presents
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The aim of market segmentation is to
increase sales, market share and profits
This is done by better understanding and
responding to the desires of different target
customers
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Market segmentation involves dividing the
total market into segments
Once the market has been segmented. A
segment of the market is chosen to be the
target market.
Target market
Segment
1
Segment
2
Segment
3
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Demographic segmentation
Geographic segmentation
Psychographic segmentation
Behavioral segmentation
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Dividing the total market according to
particular features of a population such as
age or gender
It is easy to measure demographics,
therefore it is commonly used among
marketers
Age and gender are the most common
For example coca cola targets 15-35 year old
males while Fanta targets 13-16 year olds
Geographic segmentation divides the total
market according to geographic locations
 A business may divide the market into regions
 Different geographical locations have different
needs and tastes
 A city size will impact location, for example a
fast food chain will not open in a city with a
population of 25,000
 Climate will also impact segmenting markets for
a business selling heating or cooling systems
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Psychographic segmentation is the process of
dividing the total according to personality
Characteristics such as motives, opinions,
socioeconomic groups and lifestyle
To segment this market a business would research
preferences such as TV shows, movies and music
Psychographic variables can be combined with other
segmentation variables
This segmentation focuses on why people behave the
way they do
This method of segmentation is difficult to measure
Behavioral segmentation is the process of
dividing the total market according to customer
relationships to the product
 This includes the customers knowledge of,
attitude and benefits of the product
 This type of segmentation identifies what the
customers want from the product
 By understanding what customers want from
the product, marketers can design their product
to satisfy the needs of their target market
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Demographic
Geographic
Psychographic
Behavioral
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Age
Gender
Education
Occupation
Income
Social class
Ethnicity
Religion
Region
Urban
Suburban
Rural
City size
Climate
Land forms
Lifestyle
Personality
Motives
Socioeconomic
group
• Consumer
opinions and
interests
Purchase occasion
Befits sought
Loyalty
Usage rate
Price sensitivity
Whole Market
Segment 1
Segment 2
Segment 3
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Holden is the second largest car manufacturer in Australia
They now want to sell cars to young female drivers
Using social media
Holden is best known for their top selling car the commodore
Holden has launched a social media campaign to launch the Briana
Spark
This is due to changing consumer preferences
Holden wanted to deliver a selection of cars that met with the
changing consumer preferences
Holden has began to lean towards digital advertising
The spark is priced at 12,490
The digital strategy is a large part of their marketing strategy
The campaign allows users to design their car online and share it
on twitter and Facebook
1.
2.
Distinguish the four main ways of
segmenting consumer markets.
Describe the link between market
segmentation and the target market
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