Aggregate Perspective & Market Segmentation

Why look at Aggregate Perspective?

1200000 1000000 800000 600000 400000 200000 0 1996 2002 Dublin male female

6.1% increase in population Total increase 64,336 *Source CSO

Demographics
* Population *Age
* Education

*Location *House-holds *Families *Income *Societal Changes

Population
Total Population (Persons) YEAR TOTAL

1901 1911 1926 1936 1946 1951 1961 1971 1981 1991 1996 2002

3,221,823 3,139,688 2,971,992 2,968,420 2,955,107 2,960,593 2,818,341 2,978,248 3,443,405 3,525,719 3,626,087 3,917,336

* Source CSO

Life Expectancy
80 70 60 50 40 30 20 10 0 1926 1996 Male Female

Male: 1926 57.4 1996 73.0 + 15.6 Female: 1926 57.9 1996 78.7 + 20.8 *Source CSO

Age 1996
1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 0-14 15-19 20-24 25-44 45-54 55-59 60-64 65+

*Source CSO

Education

Location

House Holds/Families

Income

Average Weekly Household Expenditure

100 90 80 70 60 50 40 30 20 10 0 '94/95 '99/00 Food Alcohol/ Tobacco Clothing/ Footware Fuel Light T'port

Food + 31% Alcohol/Tobacco + 45.6% Clothing/Footware + 38.8% Fuel/Light +11% Transport +67.2 * Source CSO

Societal Changes
Nice Treaty Religion

Religion Picture courtesy of

www.irish-tv.com

How Marketers Use Demographic Information

Information is power
Wilkie, Ch 3

Market Segmentation
Definition

Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviour, who might require separate products or marketing mixes Kotler et al Ch 9

Advantages of Market Segmentation

It provides a structured means of viewing the marketplace

Levels of Market Segmentation

Mass Marketing Segmenting Markets Niche Markets Micro-Marketing * Local Marketing * Individual Marketing

Market Segmentation is a 3 stage process

1. Identifying Segments

2. Selecting Particular Segment to target

3. Creating Marketing Mixes aimed at target segments.

Segmenting Consumer Markets

Geographic Segmentation Demographic Segmentation Behavioural Segmentation Media Exposure Segmentation Psychographic Segmentation

Geographic Segmentation

Demographic Segmentation
Age Life-Cycle Stage Gender Income

Behavioural Segmentation
Occasions Benefits Sought

Media Exposure Segmentation

Psychographic Segmentation
Social Class Life Style - AIO Activities, Interests & Opinions

Psychographics & Lifestyles

VALS

VALS - Diagram