Segmentation, targeting and positioning

The process of segmentation

- The process of identifying different groups of similar needs - the different groups of needs and wants are known as 'market segments'

Demographic segmentation - Refers to characteristics of the people in the target population (e.g. what stage they're at in their lives, age or gender)
Geographic segmentation - Refers to the needs and wants based on where they live
Income segmentation - also known as 'socioeconomic' grouping (professionals, intermediate professionals, junior professionals, skilled manual workers, semi and unskilled manual workers and casual labour)
Behavioural segmentation - Concentrates on traits and characteristics of consumers - when they buy, how much they buy, brand loyalty? and the benefits they want from the product
- Value of segmentation
  - Managers can understand what different groups want rather than treat all customers the same
  - Different groups have different requirements and priorities - marketing managers strive to understand them to decide if they can meet them and if so, how best to satisfy these needs
  - Enables more focused and efficient marketing - you dont waste your money promoting a product to the wrong audience…

Get Revising