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Published byRosamond Lucas Modified over 7 years ago
Avi Chemay presents
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
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
Demographic segmentation Geographic segmentation Psychographic segmentation Behavioral segmentation
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
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
DemographicGeographicPsychographicBehavioral 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
Segment 1Segment 2 Segment 3 Whole Market
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. Distinguish the four main ways of segmenting consumer markets. 2. Describe the link between market segmentation and the target market
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