Market Segmentation – How & Why Essay

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Market Segmentation – How & Why

As well as the physical aspect of our store changing we have to look at the market differently. Where it was once possible to take a pile it high sell it cheap approach, to achieve broad appeal to the population we need to cater to the needs of the population. This is achieved by breaking the population into groups and then releasing products and services that meet the needs of these groups. This is known as target marketing. Although we all appreciate the theoretical economies of scale given by mass marketing a single product, there are few products that appeal to everyone. Naturally this has led to a segmentation of markets as companies that marketed one product, now produce a range of …show more content…

Benefits Sought

This relates to the different benefits the customer seeks from a product or service. It is concerned with identifying what characteristics customers commonly seek. It is looks at peoples usage rates of these products or services.


This looks at the lifestyle patterns of people and tries to identify how people spend their time and money. It is worth noting that two households with similar incomes, similar social standing, in similar locations may have very lifestyles with regard to holidays for example. Situation Specific

This refers to the actual situation where the consumption of the product takes place, e.g. special occasions or in groups.

Developing these market segments is done through the use of research.
Using qualitative or quantative research and then analysing the results one can potentially identify market segments. However it is worth validating that these are real and are not a chance occurrence within the population sample chosen.

Much research has been done by ourselves and our competitors on shopping behaviour and the following six groups of shopper have been identified. Habit Bound Die Hard

Generally older person, has traditional views, tends to be frugal and sticks to a traditional eating pattern. The Habit Bound Die Hard displays a great amount of loyalty to his

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