Market Segmentation Project

Market segmentation is used to identify the customer as clearly as possible in order to be able
to market goods/services to those customers most effectively. The customer can be identified
using any or all of the categories listed below:

DEMOGRAPHIC
Income – low (under $30,000); middle ($30,000-100,000); upper (over $100,000)
Age – under 10; 10-19; 20-34; 35-64; over 65
Level of education – less than high school; high school graduate; some college; college
graduate
Gender – male, female
Marital Status – single; married; children
Occupation – blue collar; white collar; professional; not employed
Home Ownership – do they own or rent a home?

PSYCHOGRAPHIC
Customer Life Styles – includes activities, interests, or opinions that may be related to product
or service being sold

GEOGRAPHIC
Where do the customers live? – city; rural; suburban;
Region of the country – Northeast, Midwest, South, etc.

PRODUCT USAGE
Number of times consumers have purchased a similar product or service. (first time user,
former user, regular user)
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Instructions: For the products and services on the second page, you are to:
1. Identify the market segment
2. Give a summary paragraph(minimum of five useful sentences) explaining why you
believe this is an appropriate segment
Example: Betty Crocker Cake Mix
1. MARKET:
a. Demographic: female, 25-45, married, children living at home, low-middle
income, a homemaker or only employed part-time outside the home
b. Psychographic: enjoys baking
c. Geographic: rural or city in any region
d. Product Usage: is a regular user of cake mix products.
 2. Summary:
In general, a stay-home mom or part-time mom is more likely to bake cupcakes and
cakes for her children and others. A “stay-home” mom is usually between the ages of
25-45 who is normally married (who else would pay the bills?). The word “mom”
indicates that there are children living in the home. The reason for choosing low-
middle income includes the fact that most higher income mothers, even stay-home
mothers, will more likely pay to have someone else bake the cakes/cupcakes because of
their busy required social activities. The reason for adding “regular user of cake mix
products” is the fact that even if one is a “stay-home” mom, if this activity does not add
enjoyment or a utility to the mom’s life, chances are she will find someone else to bake
the products or simply not use those products. There really is no particular geographic
for this group as celebrating children and activities is a regular activity in homes with
children in all locations.

RATIONALE: More likely to bake for a family. Baking takes time so employed on a part-time
basis at the most. Likely a regular user, does other baking.

MARKET SEGMENTATION PROJECT

PRODUCTS AND SERVICES LIST
1. A cruise of the Caribbean during February 10-17. $1,500 per person.
2. An audio cassette tape and “read-along” picture book of The Lion King. $6.99
3. A “Genie” brand garage door opener not installed. $192
4. Tickets to performance of Shakespeare’s Merchant of Venice at the Performing Arts
Center. $33 per ticket.
5. Embroidered Collegiate Sweater. $35
6. “The Club” WIN 1000 auto security system. $45
7. A Richard Simmons exercise video. $19.95
8. A small 2’ X 2’ X 2’ refrigerator. $110
9. Baldwin Baby Grand Piano. $23,000
10. Subscription to Netflix. $8 a month with the offer of a “free one month trial”
11. Cannon TM all-in-one color inkjet printer for a computer, $155.
Now: Choose one of the products in the first part of this scenario(1-11) and conduct a little
research. In this scenario, you are a business owner of a company that sells the product
chosen. As the buyer for a local specialty shop, you are responsible for planning the
merchandise selection and then buying the merchandise for your business. Selection and
inventory are critical to the success of your store as there are a number of nationally branded
stores in your trading area.

Type five more paragraphs. In those paragraphs, include the: Description of Your new
Business – provide a description of your establishment.

Promotion: Include overall image, target market (copy your information included in the first
part of this project), and What promotional activities do you plan to use for the promotion of
this product and why?

Price: pricing strategy rationale, the final price of your product and why?

Product: branding strategy rational, where you can purchase this product for the lowest price,
and quantity of this product are you willing to stock and why.

Place: is this an “on-line business” or “brick and mortar business” and any customer service
points that will set you apart from the competition.

Save all of the information from part one and two in a Microsoft Word document as
“yournameproject” and submit it online under “view/complete assignment”. Please let me
know if you have any questions.