Download Market Segmentation

Market
Segmentation
Ms. Sidi
Group Discussion
Your team is in charge of selling one of the following
products. Who do you think will most likely purchase your
product? Why? Discuss
1.
Diapers
2.
Wedding gowns
3.
Cologne
• As marketers and business people, we will sell our
products to whomever will buy it
• Wedding gowns to seniors
• Cologne to a female teenager
• Yet these aren’t our “most likely customers”
• Everyone has unique physical features, personality,
values, beliefs, geographic location and history
• These differences are demonstrated by the daily decisions
and behaviours these different people make
• As a marketer, the more we know about our potential
customers, the better we are able to anticipate or
influence their buying decisions
• Marketers therefore create “Consumer Profiles” of the
kind of people most likely to be attracted to a specific
product
• Each identified group of consumers with common
characteristics and buying habits is called a “consumer
segment” which is accomplished through the process of
“segmentation”
• Once identified, marketers will focus their efforts
on trying to reach and influence these segments
• For some products, there may only be one
segment, for others there may be multiple
segments
• Examples:
•
One segment: Wedding Gowns (females, 20-30, getting married)
•
Multiple segments: Levi Jeans (how you sell jeans to teens is different than
middle age, etc.)
Let’s look at how this is
done…
 Categorizing potential consumers in this way enables
marketers to direct their efforts toward a target market, a
specific group of consumers who will be most interested in
their product
Demographics
• The study of obvious characteristics that categorize
people.
• With your group, list 5 obvious characteristics that
differentiate you from your classmates
Psychographics
• A system of measuring consumers’ beliefs, opinions, and
interests
• A way of profiling consumers on the way they “think”
• Religious beliefs, lifestyle, musical tastes, attitudes, etc.
• They are much harder to measure, yet they are vital in creating
an effective customer profile
• Why would it be important to learn about the psychographics of
a potential consumer? Discuss with your groups
Geographics
• A system of measuring “where” consumers live
• Do your customers live:
in a rural / urban / suburban area?
• Do they live in “pockets” or concentrations in certain places?
•
• IE:
•
Tractors – rural Canada
•
Indian Cuisine – focus on areas of high Indian population
•
Toronto Raptors – focus on urban / suburban GTA
Consumer Profile
What is the target consumer for Gatorade?
Profile Category
Profile Group
Age
Gender
Income
Family Life Cycle
Culture
Lifestyle/Values
Country/City
Targeted Consumer
Conclusion
• A business will obviously sell their product to whomever
they can, yet they need to focus their marketing efforts on
those who are most likely to buy it
• However, if a marketer is able to effectively profile their
target market, they can then begin to create a marketing
plan that focuses on that “target”
• Although this doesn’t guarantee business success, your
chances are much greater with a well researched and
targeted customer