Market Segmentation,

Targeting, Proposition
All marketing strategy is built on segmentation, targeting, positioning
(STP)

There are too many customers with very different needs that it makes it
impossible for companies to satisfy everyone

Therefore, it is ideal to identify the best and most profitable market and
use customer-driven marketing strategies moving to move away from
the previous trend of mass marketing

4 Segmentation Categories

Customers that they have a great chance at satisfying is the identified
target market that will be the receiver of all marketing efforts
1. identify and profile groups of buyers which have different
needs and wants – SEGMENTATION
2. select one or more market to enter based on segment
attractiveness - TARGETING
3. establish and communicate company’s offering for each
segment by developing value proposition and marketing
mix – POSITIONING
Overlap is usual, incorporation of different segments
1-Geographic
1. country – Cheetos in japan vs Philippines
(don’t just translate, understand)
2. climate – Uniqlo (practical) and h&m (winter)
3. customer needs – plantita bitches
2,3-Psychographic
Science of using technology and demographics
1. psychology part – personality, values, attitude to brand,
hobbies (northface hiking for active people)
2. demographic part – age, gender, measured in census,
income and education (rolex), religion, language, household
characteristics (where in the life stage bitch)

Marketing to the Generations – demographic variable

characteristics, lifestyles, values and attitudes of each
generation enables them to determine what strategies to
Market Segmentation employ-in terms of products and services, mode of
o Dividing market into segments or categories of common communication and approach – in reaching and selling to
consumer characteristics to find the right subset of people these segments
because not anyone can be a customer and it will cost a lot to
reach everyone
1. it can maximize marketing expense
2. it can meet and understand specific consumer needs
3. it has the ability to choose strategy for maximum impact
4. it can figure out where the product fits in the market

You can deliver a different message from one group of customers to

the next through segmentation and target marketing according to
jazz, swing, frank withdrawn, cautious, Spend for
segments Silent Sinatra, gone with the unimaginative, grandchildren
Generation wind, mickey mouse indifferent,
Builders, Radio Babies, unadventurous, silent
Traditionalists
(1925-1945)
Born between world High spending power
Baby Boomers war 2 and late 1960s Seek fountain of youth
(1946-1964) when certain nations ex. Hair color, hair
and esp US economy replacement, exercise
boomed equipment
 accepts diversity Relied on daycare
Gen X pragmatic,
individualistic
Access to technology in Raised in affluence and
Gen Y youth tech savvy
Millennials, eco
boomers
Mass use of
Gen Z communication and
Digital natives media technology:
instant messaging, text
messaging, mp3
players, mobile phones
First to be born entirely Early childhood defined Main medium of
Gen Alpha to 21st century and full by pandemic communication –
Glass generation immersed in glass-fronted devices
Named after first letter technology COCOMELON HIT IT
of Greek alphabet SKRRT SKRRT
Diversity in key areas
Children of millennials such as ethnicity, family
or gen y and younger structure and finances Requirements for Effective Segmentation
siblings of gen z
In order for market segments to be useful, they must be:
1. measurable - is it quantifiable? Profitable?
2. accessible - is it reachable, servable?
3. substantial - is it large enough to be served?
4. differentiable - can the segments be distinguished and are they
responsive to the different marketing mix elements ?
5. actionable - can effective programs for them be formulated?

Decision Roles

4-Behavioral
1. initiator feels the need
1. Benefits that influence the customer
2. influencer chooses model to buy
2. degree of loyalty
3. decider determine which model to buy
4. buyer makes purchase
5. user enjoys product, provides feedback

3. rate of use –buy some more bitch slap on Disney design User and Usage
1. occasions
2. user status – non users, ex users, potential
3. usage rate – light, medium, heavy
4. buyer readiness – unaware, aware, informed, interested, has the
desire to buy, intend to buy
5. loyalty status – hard core, split, shifting, switchers

Geodemographic Segmentation
Range of methods used to classify customers based on the principle
that the closer the live, the more similar their demographic,
socio-economic, and lifestyle characteristics are

Where a person lives determines her consumption behavior

Korean fashion vs y2k western