Market Segmentation



Market Segmentation

What You’ll Learn

Definition of Market Segmentation

Four Methods to segment a market

Differentiate between Mass Marketing and Segmentation

Analyzing Markets

______________________ is a way of analyzing a market by specific characteristics in order to create a target market.

Segment by

_____________

_____________

_____________

behavioral factors

Demographics

________________ - Statistics that describe a population in terms of personal characteristics including

_________

Gender (male/female)

_________

Ethnic background

_________

Occupation

Demographics - AGE

Classify by generation which have collective shared experiences and common bonds

_________________ Generation

1946-1964

Generation __________ (Baby Bust Generation)

1965-1976

Generation __________ (Echo Boomers or Millennium Generation)

1977-1997

See pg 39 for description of groups

Demographics - GENDER

Target only __________________ with specific products

Gender neutral products may use gender specific promotions to appeal to each gender

Demographics - INCOME

_________________ income – money left after paying taxes

_________________ income – is the money left after paying for basic living necessities such as food, shelter and clothing.

When marketing luxury items, companies must be very aware of changes in discretionary income

Income levels help to distinguish between different ______________ groups.

Affluent – 8 million households, income greater than $100,000 year – HALF of all discretionary spending in the US

Demographics – Marital Status

___________ couples are 50.7% of total households in US

Down from 80% in 1950

Reasons for changes

People are __________ when they get married for the first time

People are __________ more, living longer and __________ less

Married couples with kids are _________ of population

Demographics - Ethnic Background

US is multi-cultural and ethnically diverse due to increased immigration

[pic]

Geographics

__________________ is segmentation of the market based on where people live. Local, regional , national or even global markets.

Geographics is studied in relation to _______, ethnic background and _________

Government created Metropolitan Statistical Areas MSA’s

defined geographical areas used for distribution of financial aid.

Marketers also use to target consumers.

Sales and Marketing Management magazine reports on where people are moving and spending power of MSAs.

Psychographics

________________involves grouping people with similar lifestyles, attitudes, ______________ and ________________

Requires special research to learn about personality ______ and __________

Lifestyles are people’s attitudes and values. How people spend their time and money

People who share similar interests have similar attitudes. Some __________ are targeted this way.

Trends include changes in households, the economy, politics and the ___________. These changes contribute to changes in attitudes about health, time, fun and living and general.

Behavioral

Segmenting based on product-related ___________involves looking at

The _____________ desired by the consumers

Shopping ____________ of the customers

Usage ___________

Examples of desired benefits

Sport shoes – jog, walk, tennis aerobics.

Shampoo – oily, dry or normal.

Soda, diet, caffeine free, etc.

Behavioral

Examples:

Desire for ___________ goods is a growing consumer trend

MasterCard research of online consumers and their concern for security:

Confident Core Users

Cautious Shoppers

Mainstream Users

Curious but not convinced

Technological Skeptics

Teenagers spend less than __________ a month on entertainment

Teenage ____________ spend more on music than ____________

Consumer Behavior

____________ Rule

________ of a company’s sales are generated by 20% of its loyal customers

Mass Marketing vs Segmentation

____________ marketing is not as popular since most markets can be segmented

Current trend is toward ____________ Marketing

Markets are __________________ and defined with extreme precision

Even products with one slogan will use different models and themes to reach different segments

Conclusion

Definition of Market Segmentation

Four Methods to segment a market

Differentiate between Mass Marketing and Segmentation

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download