Market Segmentation

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Market Segmentation

What is Segmentation?

Market segmentation is the practice of dividing a market into

identifiable groups of customers with common characteristics and

motivations. This is so that each group can be treated independantly,

tailoring the marketing mix to meet the needs of each segment.

Furthermore, opportunities for new products and any niche markets are

highlighted. Segmentation also portrays which segemets are doing well,

which are likey profitable to be profitable/worth pursuing, which

segments need additional marketing support and which should be

ignored.

Psychographic

This affects the psychological motivation of the purchaser. It’s based

on the benefits that the products/services offer to the purchaser.

Factors that affect the buying decisions are increasingly emotive

rather than practical. Psychological factors are:

- Life style

Segmentation is based on actual lifestyle differences as well as

perception. Different lifestlyes fall into different catogories, for

example modern and trend-setting or traditional with few changes.

Another example would be expensive and willing to pay money or

unwilling to spend more than that is necessary.

- Interests

These would include sports, leisure activities and hobbies.

- Attitudes

Markets can be analysed and segmentated by attitude to politics,

lifestyle, certain products. For example an example concerning

chocolate and food be that some people would be willing to eat

non-organic foods others don't.

- Opinions

Identifies group with similar opinions on political and social issues.

Opinion polls are used to find the moods and feeligs of the target

group and the products can be tailored to appeal to the target

audience e.g Iceland appeals to consumers due to its no GM product

policy.

- Values

Values are influenced by family and social conditioning and the

product can be adapted to reflect values of the product. For example

fair-trade chocolate bars may appeal to ethica customers.

- Taste

Products can be catogrised to be in good or bad taste. Bad taste may

be seen as bad or offensive to some people but good to others because

its entertaining to others. For example a film with 'gross out' images

and storylines offends older people but amuses the youth. This

portrays how different people have different tastes.

How segmentation has affected the development of DeLights has been

incorporated when explaining the marketing mix each of the 4 P's.

Demographic

Demographic segmentation is where a market is analysed and divided

into groups based on demographic factors such as age and sex. These

factors relate to the social and economic features of the market being

segmented. Demographic variables can be closely related to customer

needs and purchasing behaviour, this helps producers target their

product more effectively.

Age

· Consumer needs and wants change with age although they may wish to

sell the same product to different types of people for example

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