Lecture notes
Marketing Segmentation
- Module
- Marketing
- Institution
- The University Of Manchester (UOM)
Describes the different market segments, factors affecting segmentation, marketing strategies and positioning.
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By: Patrick95 • 9 year ago
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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.
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