Class notes
Marketing Segmentation
- Course
- Institution
Describes the different market segments, factors affecting segmentation, marketing strategies and positioning.
[Show more]
1 review
By: Patrick95 • 9 year ago
Seller
Follow
BMAN
Reviews received
Content preview
MarketingThe technique used by marketers to get grips with the diverse nature of markets is
called Market Segmentation. It involves identification of various groups with similar
characteristics for determining a marketing strategy. It is useful to identify a ‘target
group of customers’ of a firm.
Its benefits are as follow –
1. Profitability
2. Growth
3. Customer satisfaction and retention
4. Segment dominance
5. Effective policy
The variables for the process of segmentation are as follow –
1. Psychographic – purchasing behaviour correlated with personality
(agreeable/extrovert) and lifestyle (sophisticated, conservative, trendsetter) of
consumers.
2. Behavioural – example: benefits sought by buying the product, buying
patterns (brand loyalty/switcher), usage needs, beliefs and purchase occasion.
3. Profile segmentation – describing similar groups who exhibit different
behaviour. For example: geographic location, socio-economic factors, age and gender.
Behavioural Variable
1. Benefits sought: segmenting on the basis of why the product is bought. It
might be basic benefits or a feeling if status and prestige. Example: toothpaste and
watch respectively.
2. Purchase Behaviour: brand loyalty, switching brands, special offer seekers.
Knowing the biographies (recent trends) can be helpful to target customers.
3. Usage: heavy users are receiving most marketing attention. It might be
beneficial to target light/non users to face less competition.
Psychographic variable
1. Lifestyle: terms of their way in life, interests and opinions. Example: instant
cook companies.
Profile Segmentation Variable
1. Age: grey market for old people, children, Gen Y
2. Social Class: same social class have quiet similar beliefs
3. Geography: country/ regions/ city size. Companies can use surveys to find out
such details.
4. Geo-demographics: Combining geographical barriers with demographical
variable to find another market segment.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BMAN. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.50. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now