The

Evolution of Segmentation
 Common Market Segmentation Variables
Identifier Variables (Who they are) Response Variables (What they
want)
Consumer Markets Benefits Desired
•  Demographics (age, sex, life •  Price, reliability, service
cycle stage, ethnicity, religion) Application or Usage Situation
•  Socioeconomic factors (income, •  Schedule vs. unplanned
occupation, education) maintenance
•  Psychographics (beliefs, Sensitivity to Marketing Mix
opinions, activities, interests) •  Price, Promotion, Product
Business Markets features
•  Size of customer Purchasing Behavior
•  Industry •  Buying vol and frequency
•  Geographical location •  Switching among brands
•  By application •  Purchasing approach
•  Channels used
 The Evolution of Segmentation

•  Demographic
•  Psychographic – VALS
•  Behavioural & attitudinal
•  Industry Segmentation
•  Segmentation by job
The VALS Segmentation System
 Behavioral Segmentation

Decision Roles Behavioral Variables

•  Initiator •  Occasions
•  Influencer •  Benefits
•  Decider •  User Status
•  Buyer •  Usage Rate
•  User •  Buyer-Readiness
•  Loyalty Status
•  Attitude
 Steps in Segmentation Process

Needs-based segmentation

Segment identification Marketing-Mix

Segment attractiveness Strategy

Segment profitability

Segment positioning

Segment acid test

Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable