Market Segmentation Three Parts Demographics Geographic Psychographics
Demographics Age –Baby Boomers, Generation X, Generation Y Gender- Income- Disposable money left after taxes vs. Discretionary income money left after paying basic living expense. Martial Status- 50.7 % 2000’s compare to 80% in 1950’s Ethnic Background – US is becoming multiculture and ethnically diverse.
Geographic Refers to segmentation of the market based on where people live. People live certain area Segment the market geographically you refer – local, regional, national or grobal Need to know where your target lives
Psychographics Involves grouping people with similar lifestyles and Activities – list all activities that you are involved in. You will find a magazine about that activity. Attitude – eating healthier, becoming physically fit, taking responsibility for your health. Personality & Values – likes, dislikes, and characteristic
Mass Market vs. Segmentation Mass- Single strategy Reach all customers Segmentation- Narrow down and define with extreme precision More selective on ads