1. 8-4
Segmentation & Targeting Overview
Marketing segmentation is the process of
grouping individuals or businesses,
according to use, consumption or benefits
of a product or service.
Targeting is the process of selecting
market segments that are most attractive
to the firm.

2. 8-5
Three Basic Markets
Business Market
Government Market
Consumer Market

3. 8-6
Geographic location.
Demographics.
Psychographics.
Behavior with regard to the product.
Companies can combines bases, such as
geodemographics (geography and
demographics).
Segmentation Bases

4. 8-7
Geographic Segments
Product distribution strategy is a driving
force behind geographic segmentation.
Countries may be segmented based on
Internet usage.
U.S. has 186 million users.
China has 95.6 million users.
Japan has 77.9 million users.
Geographic markets may also be
evaluated by infrastructure variables.
Language spoken may also be a variable.

5. 8-8
Top Internet Languages
English, 35.8%
Chinese, 14.1%Japanese, 9.6%
Spanish, 9.0%
German, 7.3%
Korean, 4.1%
French, 3.8%
Portuguese, 3.5%
Italian, 3.3%
Russian, 2.5%
Dutch, 1.8%
Other, 5.2%

6. 8-9
In developed nations, users are much like
the mainstream population
demographically.
Three market segments are of great
interest to e-marketers.
Millenials
Ethnic groups
Influentials
Demographic Segments

7. 8-10
Millenials
Of those born between 1979 and 1994,
over 75% use the Internet.
They grew up with the Internet.
80% have cell phones and 36% use text
messaging.
Most have broadband for downloading
music and watching videos online.
This group is a proving ground for the
future.

8. 8-11
Ethnic Groups
59% of Hispanics use the Internet; 55%
use the Spanish language online.
African Americans have 43% rate of
adoption and tend to be younger, more
highly educated and more affluent than
African Americans not using the Internet.
More than half of Chinese Americans
have Internet access and high purchasing
power.

9. 8-12
Influentials
Influentials are individuals who influence
others.
Represent 10% of the population and
15% of Internet users.
They serve as opinion leaders for the rest
of the population.

10. 8-13
Psychographic Segments
User psychographics include:
Personality
Values
Lifestyles
Activities
Interests
Opinions

11. 8-14
Interest Communities
Interest communities attract like-minded
individuals who post comments on Web sites or
send e-mails to other members.
Exhibit 8.7 lists ten important types of online
communities.
There are 3 ways to target online communities.
Provide online chats and events.
Advertise on another firm’s community site.
Join the community and post as a member (stealth or
guerilla marketing).

12. 8-15
Some marketers believe that a segment’s
attitudes toward technology determine
buying behavior.
Forrester Research measures attitudes
toward technology with a system called
Technographics™.
Their findings provide a number of clues
about online purchasing behavior.
Attitudes and Behaviors

13. 8-16
Two common segmentation variables are
benefits sought and product usage.
Online shopper can be bargain hunters or
convenience shoppers.
Marketers often segment by light, medium and
heavy product usage.
Behavior Segments

14. 8-17
Usage Segments
Marketers can segment according to how
consumers use the Internet.
Home vs. work access
Access speed
Preferred receiving device
Time spent online
Industry specific usage

15. 8-18
Usage Segments, cont.
Approximately 56 million U.S. users
access the Internet from work and 202.4
million from home.
Broadband users operate differently from
narrowband users online.
75% play audio CDs.
60% play online games.
48% download music and watch streaming
video or DVDs.

16. 8-19
User Segments Based on Online Viewing
Behavior
Segment Important Facts Online Time
Simplifiers
50% of total online purchases.
49% have been online for over five years.
Longest online tenure.
7 hours per month.
Surfers
8% of active user population.
32% of online time usage—far more than
any other segment.
More than the average of 9.8 hours
per month.
Connectors
36% active user population.
40% have been online under two years.
42% have made online purchases.
Less than the average of 9.8 per
month.
Bargainers
8% of active user population.
52% are eBay users.
Less than the average of 9.8 per
month.
Routiners
6% have purchased online.
They visit fewer domains.
9.8 hours per month.
Sportsters 4% of active user population. 7.1 hours per month.

17. 8-20
Targeting Online Customers
E-marketers may select from among 4
different approaches for a targeting
strategy.
Mass marketing or undifferentiated targeting
Multisegment marketing
Niche marketing
Micromarketing
The Internet’s big promise is
individualized targeting.