1. Market segmentation is the process of dividing a market into subsets of customers with similar needs and characteristics.
2. It is becoming more important due to increasing customer variety and sophistication, as well as trends towards microsegmentation.
3. Microsegmentation divides the market into individuals who influence purchase decisions, focusing on criteria like age, gender, income, and occupation.
1. Market segmentation is the process of dividing a market into subsets of customers with similar needs and characteristics.
2. It is becoming more important due to increasing customer variety and sophistication, as well as trends towards microsegmentation.
3. Microsegmentation divides the market into individuals who influence purchase decisions, focusing on criteria like age, gender, income, and occupation.
1. Market segmentation is the process of dividing a market into subsets of customers with similar needs and characteristics.
2. It is becoming more important due to increasing customer variety and sophistication, as well as trends towards microsegmentation.
3. Microsegmentation divides the market into individuals who influence purchase decisions, focusing on criteria like age, gender, income, and occupation.
Market Segmentation = process competition by which a market is divided it's becoming more important due into distinct subsets of to: customers with similar needs & Customers more varied & sophisticated needs than before characteristics Target Marketing = Evaluating Trends towards the relative attractiveness of microsegmentation various segments 1. ID similar segment that differs from others 3 NB objectives to the market 2. Specify crieria that defines the segmentation process: segment Product positiong = designing product offerings & marketing 3. Determine segment size & programmes that collectively potential establish an enduring competitive advantage Micro segmentation = divides market into indivduals who influence purchase decision Age Macro segmentation = divides market according to characteristics of the buying Gender organisation in demographic terms Income Niche Market Strategy Occupation Targeting Strategies Mass Market Strategy Step 1 - Select criteria to measure Module 9 attractiveness Demographic descriptors Education Growth Market Strategy Market Segment Geography Step 2- Weight each factor and Target Marketing Race and ethnic origin Step3- Rate segments on each factor A five step process Choosing attractive market Divides into different trade areas Step 4 - Project future position for segments each segment Geographic descriptors
Step 5 - Choose segments to
target, allocate resources Choice criteria 1. Segmentation Descriptors PAGE 111 Consumer needs Benefits sought both geographic and demographic factors
Product usage Geodemographic
How consumers pursue & acquire Product related behavioural
e.g housewives products descriptors Purchase influence Consumers motivated by abstract Self orientated & principles Principle orientated Guided by need for social or physical activity Action orientated Lifestyle Include all pschological, physical, Behavioural descriptors material means consumers have to draw on Resource orientated General behavioural descriptors
VALS2 pg 107 Status Orientated
Social Class degree to which the purchasing acrtivity is centralised Purchasing structure Organisation or firm behavioural