The Consumer
Decision Making, Segmentation and
Target Market selection
What is Segmentation
Why Segmentation?
• Growth!
• Sales!
• Will drive your marketing strategy
– 4Ps
Steps
• Choose Segmentation Bases
– Think Hybrid
– Product
• Evaluate Attractiveness of Segments
– Profitability
– Criteria
• Select Target Market(s)
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Micromarketing/one to tone
Concentrated
Differentiated/Multisegment
Mass/Undifferentiated
• Positioning
Who are they targeting?
Who are they targeting?
Criteria for segments
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Substantial
Identifiable
Measurable
Accessible
Responsive
Segmentation Bases
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Demographic
Geographic
Psychographic
Benefit
Usage-Rate
Demographics
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Age
Gender
Income
Family Lifecycle
Ethnic
Gender Segmentation
Psychographics
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Personality
Motives
Lifestyles
Geodemographics
– PrizmNE
Target Market Example
• Target runners
that seek to
land on the
forefoot
Other Bases
• Benefit
– Benefits they seek from the product
• Usage-Rate
– Amount of product bought or consumed
– 80/20 principle
Positioning
Know that you know WHO you will be talking to…
– What will be your story?
• How will you differentiate from the competition?
– Positioning Bases
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Attribute
Price and Quality
Use or application
Product user
Product class
Competitor
Emotion
– Repositioning
Gatorade vs. 7up
• Athletes
• Sports drink
• Fuel for muscles,
hydration and
electrolytes
• Non-cola drinkers
• Non-caffeinated soft
drink
• Refreshing drink
Perceptual Mapping
Perceptual Mapping
Repositioning