Download market segmentation

MARKET SEGMENTATION
The division of potential customers into groups
with similar characteristics
Nivea
Questions
1. Why does Nivea have to segment the market?
2. How have Nivea segmented their product range?
List the 3 segments and explain what each segment
uses the product for.
3. How does market segmentation allow Nivea to
maintain high sales/ market share?
Segmentation
SOCIO-ECONOMIC CLASS –
Some business aim their products at specific social classes, and their
income.
Segmentation
RELIGION / ETHNICITY –
Products may be targeted towards specific religious / ethic groups.
Segmentation
AGE –
The demand for some products is clearly linked to age. For example,
holiday companies segments the market by age.
Segmentation
GENDER –
Some business aim their products specifically at one gender,
producing products just for women or men.
Segmentation
LIFESTYLE –
This method of segmentation attempts to classify consumers according
to their individual patterns of expenditure.
Segmentation
GEODEMOGRAPHIC –
Segments consumers using geographic and economic factors. For example,
where the customer lives and the type of house they live in.
www.upmystreet.com
How would you market:
Consider:
•Age
•Gender
•Religion
•Socio-economic class
•Life-style
•Geographic location
Trainers
Newcastle Brown Ale
Bentley
Incense
Burberry hat
• http://www.youtube.com/watch?v=llJNwdVG88
Mass Market
• This is where there is a very large number of
sales of a product
RC
Niche market
• This is a small usually specialised, market
segment of a much larger market.
RC
Niche or mass market?
RC