Chapter 3
Marketing Segmentation
What is Marketing Segmentation?
• Who uses market segmentation?
• How does market segmentation operate?
Market
Segmentation
The process of dividing a
potential market into distinct
subsets of consumers and
selecting one or more
segments as a target market
to be reached with a distinct
marketing mix.
Mass
Marketing
Offering the same product
and marketing mix to all
consumers.
Positioning
Establishing a specific image
for a brand in relation to
competing brands.
Bases for Segmentation
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Geographic Segmentation
Demographic Segmentation
Psychological Segmentation
Psychographic Segmentation
Sociocultural Segmentation
Use-Related Segmentation
Usage-Situation Segmentation
Benefit Segmentation
Hybrid Segmentation Approaches
AIOs
Psychographic variables that
focus on activities, interests,
and opinions. Also referred
to as Lifestyle.
Hybrid Segmentation Approaches
• Psychographic-Demographic Profiles
• Geodemographic Segmentation
• SRI Consulting’s Values and Lifestyle System
(VALSTM)
Criteria For Effective Targeting of
Market Segments
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Identification
Sufficiency
Stability
Accessibility
Implementing Segmentation Strategies
• Concentrated Versus Differentiated Marketing
• Countersegmentation
Countersegmentation
Strategy
A strategy in which a
company combines two or
more segments into a single
segment to be targeted with
an individually tailored
product or promotion
campaign.