Professional Documents
Culture Documents
Raymund Sanchez
Definition
A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
it is distinct from other segments (heterogeneity across segments) it is homogeneous within the segment (exhibits common attributes) it responds similarly to a market stimuli it can be reached by a market intervention
Size, purchasing power, profiles of segments can be measured. Segments must be effectively reached and served.
Segments must respond differently to different marketing mix elements & actions. Must be able to attract and serve the segments.
Purpose
Increase marketing efficiency by focusing marketing efforts to a particular group Maximize scarce marketing resources Find a market with limited competition Select the most profitable segment
Segmentation Criteria
Geographic variables
region of the world or country, East, West, South, North, Central, coastal, hilly, etc. country size/country size : Metropolitan Cities, small cities, towns. Density of Area Urban, Semi-urban, Rural. climate Hot, Cold, Humid, Rainy.
Segmentation Criteria
Geographic
Nations, states, regions or cities
Demographic
Age, gender, family size and life cycle, or income
Psychographic
Social class, lifestyle, or personality
Behavioral
Occasions, benefits, uses, or responses
Demographic Criteria
Demographic variables
age gender sexual orientation family size family life cycle education income occupation education socioeconomic status religion nationality/race language
Psychographic Criteria
Psychographic variables
personality life style value attitude
Behavioral Criteria
Behavioral variables
benefit sought product usage rate brand loyalty product end use readiness-to-buy stage decision making unit profitability income status
Market Segmentation
Levels of Segmentation
Mass Marketing Same product to all consumers (no segmentation)