S.T.

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SEGMENTATION – TARGETING – POSITIONING

Segmentation
When mentioning segmentation first thing that pops up from your mind is how can a company
divide a market into segments but not any segmentation meant, effective segmentation to get the
maximum benefits from the STP process. Segmentation involves dividing population into groups
according to shared characteristics, whereas targeting implies choosing specific groups identified
as a result of segmentation to sell products.

Uber divides large, heterogeneous markets into smaller segments that can be reached more
efficiently and effectively with products and services that match their unique needs. Uber uses
mainly a mix of demographic and geographic segmentation variables which helped the company
knowing it’s customers its services accordingly.

 Bases for segmenting consumer market:

Geographic
When talking about the geographic factor it’s important to divide it adequately in order to reach best
results when segmenting (Nations – Governments – Urban – Rural), demographic segmentation is
important because Uber needs to know which areas to target for customers who are ready to use an
“on order transportation service” over public transport services. Urbanites are the biggest users of
Uber – with just 6% living outside an urban or suburban area. Perhaps less predictable is that over
a quarter of users come from the top income quartile. With this group in fact over-indexing by
40% for Uber, it’s clear that its appeal goes beyond simple financial savings. You will not find Uber
in Rural areas but mainly in urban areas only where it replaces taxis. Although it has been increasing
in many places but not with the same slope and rate of the Urbans.

Demographic
Demographic segmentation is the process of dividing your market into segments based on things
like interests, age, gender, income, social class, family size, and generation. This helps brands
spend marketing budget more efficiently. Instead of going after their entire market, they’re able to
show relevant messages to people more likely to care

Interests
Mainly uber user interests will be about speed, they value time and have no time to waste standing
in the street searching for a cab also they value time and those who could use the technology since
you can’t use the service except via a smart phone

Age
It doesn’t differ the age for this service, as it is a service used by every age since all could travel
from one destination to another for different purposes

Life stage
When describing the life stage we could discuss each of the marriage status if divorced or not for
example or a stage of life to be precise. Though there’s variety but still the life stage segment won’t
affect the marketing of this service

Gender
When dividing the genders to male and female (talking about our case study in Egypt), for a long
time it was not safe for females to ride a car or a taxi with a stranger but now a day with such a
services things have changed to get safer that’s why one of uber’s key strengths in the security to
eliminate such a doubt, so both genders will be included.

Family size
It doesn’t differ the Family size for this service, as it is a service used by everyone since all could
travel from one destination to another for different purposes

Income
Uber’s segmentation in this point will be about people who already could afford from their income
non-public transportation (Trains-metro-buses)

Generation
Millenniums were the first to be users for such a service and were considered one of the key and
focal points at the beginning since they were the first to use and know about the service because
of their technological expertise so they are considered one of the most important segments and
also due to their high number in population moving to the older generation also
Social Class
When mentioning social class, it is a vast of segment that could only exclude those who can’t
afford private transportation and aim the group public ones

Psychographic Segmentation
Psychographic segmentation is defined as a market segmentation technique where groups are
formed according to psychological traits that influence consumption habits drawn from people’s
lifestyle and preferences. It is mainly conducted on the basis of how people think and what do
they aspire their life to be.

VALS
Values & life style segments, in this segment those who share the identities of resourcefulness to
be innovators, those also who share some impulsive traits and risk takers who have high
resources will have a higher priority of segmenting.

Behavioral segmentation
Behavioral segmentation is the process of segmenting consumers based on their relationship and
feelings towards a company. Businesses need to know how consumers react to products,
promotions, and brands. Because how they react based on dislikes, attitude, and previous
knowledge of the brand impacts sales. The better you segment your consumers, the higher
probability of success when marketing to them.

Occasions