Market Segmentation

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Market segmentation- is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Small segments are often termed niche markets or specialty markets. However, all segments fall into either consumer or…show more content…
The approach is as follows. First consumers are divided into one of four possible life cycle groups:  Dependent adult - single adults (Single men and women living on their own-- spend on fashion, vacations, and recreation)  Pre-Family - Adults married without children (spend on vacations, cars, and clothing)  Family - One or more children (spend on baby food, toys; buy home and furniture)  Late - Adults whose children have left home (family income at peak -- travel, cruises, vacation) • Gender- Gender segmentation is widely used in consumer marketing. The best examples include: clothing, hairdressing, magazines and toiletries and cosmetics. • Income- Many companies target affluent consumers with luxury goods and convenience services. Good examples include Coutts bank; Moet & Chandon champagne and Elegant Resorts - an up-market travel company. By contrast, many companies focus on marketing products that appeal directly to consumers with relatively low incomes. Examples include: Aldi (a discount food retailer), Air tours holidays, and discount clothing retailers such as TK Maxx. • Social class/income - The current convention in the UK is to use a mixture of social class and income. Classifications are based on the occupation of the head of household. Despite criticisms of this classification for being inadequate to describe consumer groups recent research has emphasized that it still maintains its discriminating power. Psychographic segmentation
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