2. Definition:
The breaking down or building up a potential
buyers
Into groups called market segmentation
Different customers have different needs, and its
rarely possible to satisfy all the customers by
treating them alike.
4. Geographic segmentation tries to divide
markets into different geographical units:
Regions
Size of the area
Population density
Climate
5. Demographic segmentation consists of
dividing the market into groups based on
variables such as:
Age
Gender
Income
Social class
Life style
6. Psychographic segmentation groups
customers according to their lifestyle.
Activities, interest, and opinions (AIO)
surveys are one tool for measuring lifestyle.
Activities
Interest
Opinion
Values
7. Behavioralistic segmentation is based on
actual customer behavior towards products.
Some behavioralistic variable include:
Opinions, interests and hobbies
Degree of loyalty
Occasions
Benefits sought
Usage
8. Consists of a set of buyers who share
common needs or characteristics that the
company decides to serve.
9. Segment size and growth
Segment structural attractiveness
Level of competition
Substitute products
Power of buyers
Powerful suppliers
Company objectives and resources
11. Considerations include:
Company resources
The degree of product variability
Product’s life-cycle stage
Market variability
Competitors’ marketing strategies
12. Some segments, especially children, are at
special risk
Many potential abuses on the Internet,
including fraud Internet shoppers
Controversy occurs when the methods used
are questionable.
13. The place the product occupies in consumers’
minds relative to competing products.
Typically defined by consumers on the basis
of important attributes.
Involves implanting the brand’s unique
benefits and differentiation in the customer’s
mind.
Positioning maps that plot perceptions of
brands are commonly used.
