The document defines market segmentation as dividing a target market into groups with similar needs and behaviors. It describes the main types of market segmentation as geographic, demographic, psychographic, and behavioral. The document also explains the benefits of market segmentation for businesses as understanding customers better to develop targeted products and marketing strategies.

1. M S O N
T
ARKE E GMENTATI

2. Lesson Objectives
Define market segmentation
Describe and Identify
segment market for product or
service
Appreciate the importance of
market segmentation to
marketers

3. Who are these products targeted at?

4. Market Segmentation

5. SEGMENTATION
 Is the process of dividing a
company’s target market into
groups of potential customers
with similar needs and behavior
 It allows to reach customers or
prospects based on their
specific needs and wants.

6. Definition
 Is the process of breaking down a market
into sub groups
 Uses market research to find information
on people who would fit into the product or
services’ target market
E.g. Threshers used such information to
make sure each store was stocked with
goods suitable to the population of the
area it serves

7. Benefits
 Should allow a business to sell more
products and increase profits
 Understand customers better and vary
products to suite their needs
 Helps target products at specific customer
groups
 Prevent wrong product promotion, leading
to a waste of resources
 Allow marketing a wider range of
differentiated products
 Develop business loyalty when needs are
met

8. Types of market segmentation
There are four main types:
1. Geographical – where they
live?
2. Demographic – by gender,
class, age, ethnicity or religion
3. Psychographical – by lifestyle
and personality
4. Behaviour – by how they act
(repeat purchases)

9. Geographic segmentation
•Including where the consumers live and the nature
of the region
•Type of house or area of the city they live in
•Global businesses will sell different products in
various parts of the world (Nestle sells profiteroles in
France)
•Goods can also be priced differently across the
globe - car manufacturers (economy, production)
•However, consumers tastes are becoming more
uniform across geographic boundaries (football club
supporters)

10. Demographic Segmentation
 Age – music gets targeted at different categories of
age
 Gender – targeting males and females because they
have different spending patterns (Ford Ka targeted
women)
 Social Class – Look at table 1 in text books, based
on employment status and conditions (used by
banks and insurance companies)
 Income – A self employed electrician and a middle
manager could have the same income (watch
companies in magazines)
 Religion – Food producers may specialise in Kosher
food for Jewish people, also sky Christian channels
 Ethnic grouping – Radio stations gear towards
certain groups, Radio 1 extra for black music

11. Market segmentation
 A Higher managerial, administrative or
professional
 B Intermediate managerial, administrative and
professional
 C1 Supervisory, clerical, junior administrative or
professional
 C2 Skilled manual workers
 D Semi and unskilled manual workers
 E State pensioners, widows, lowest grade
workers.

12. Psychographic Segmentation
 Groups customers according to attitudes,
opinions and lifestyles
 Sports products aimed at different groups,
football boots in a football magazine
 Attitudes used to segment the market
 Mobile phones offer internet access for
business travellers
 Newspapers geared towards how people
vote
 However, it can be difficult for businesses
to collect this data and may require hiring
in a specialist

13. Behavioural Segmentation
 Segments on how consumers relate to a
product
 Usage rate – consumers are categorised
according to quantity and frequency of
purchase (BA has executive club)
 Loyalty – The Tesco Clubcard offers
discounts for loyalty to store
 Time and date of consumption – Bars
encourage different groups on certain
nights of the week
 On its own may fail to capture the target
market so needs to be used in accordance
with other methods

14. ANALYSIS
 WHAT VARIABLE IN MARKET
SEGMENTATION DO YOU THINK
THAT PRODUCT MAY
APPLY/USE?
 WHY WE SHOULD NEED TO
KNOW ABOUT THIS FOUR
VARIABLES?
 DO YOU THINK THIS FOUR
VARIABLES ARE
IMPORTANT?WHY?

15. Market Segmentation and
strategy

16. I
YOU

17. QUESTION #1
 WHAT BUSINESS WOULD
YOU LIKE TO VENTURE IN
THE MUNICIPALITY OF
ASUNCION?WHY?
 USE THE 4 VARIABLES IN
MARKET SEGMENTATION

18. QUESTION # 2
Choose one of the products listed below and state how it has been
segmented for the market.

19. QUESTION #3
How can
market
segmentation
benefit a
business?

20. Market Segmentation and
strategy
 Recap on segmentation
 Understand different marketing
strategies
 Know targeting and positioning
strategies

21. Market Segmentation and
strategy
Think of
different Ford
Products
Why do they
have so many
products?
Who are
their target
market?
How do
they
segment
the market?

22. Segmentation, targeting and
positioning
Planning a marketing
strategy
Market
segmentation
Market
targeting
Market
positioning
Identify the market
Developing customer
profiles
Evaluating market
segments
Selecting market
segments to target
Positioning for each
market segment
Developing a
marketing mix for
each target segment

23. Questions
1. How can a market be
segmented geographically? (3)
2. How might a business, plan
concentrated marketing
strategy? (6)

24. Questions
1. What is meant by a market
segment? (3)
2. How can market segmentation
benefit a business? (3)
3. List three ways, with examples, of
how a business can differentiate
the product. (3)

25. 1. A variable used in market
segmentation that pertains to
where the population is
located examples are : region,
density, climate.
 A.Psychographic
 B.Demographic
 C.Geographic
 D. Behavior-graphic

26. 2. Gender, age, income,
occupation, education it is the
_______________variable in
market segmentation.
A.Psychographic
B.Demographic
C.Geographic
D. Behavior-graphic

27. 3. These are variables
that represent the
psychological profile of
consumer
A.Psychographic
B.Demographic
C.Geographic
D. Behavior-graphic

28. 4. It is the segmentation variable most
indicative of purchase behavior but it
is not available to all organizations as
it depends on the meticulous
maintenance and
A.Psychographic
B.Demographic
C.Geographic
D. Behavior-graphic

29. 5. It is the process of dividing
a market of potential
customers into groups based
on different characteristics.
A.Psychographic
B.Demographic
C.Geographic
D. Behavior-graphic

30. ASSIGNMENT
Research for an advertisement of a famous
Philippine company www.phcompanies.com
To be submitted 12:00 noon today through my
email address geraldinenestosoiran26@gmail.com
Who do you think is the target
market of this company?
Why?