characteristics of the market segmentation Flashcards
what is market segmentation
when a market is trying to understand a target market further, it is helpful to segment the market.
target market
a group of customers at which a company aims its products
segmentation characteristics that are used to divide a broad target market
geographic characterstics
demographic characteristics
psychographic characteristics
why is market segmentation important
business must use market segmentation otherwise is will lose customers to a competitor that does
geographic segmentation
based on where they live:
country
state
rural/suburban/urban
climate
population size
example of geographic segmentation
a clothing company that targets teenagers may sell very different clothes for their segment who live in canada vs their segment from australia
demographic segment
based on:
income
sex
age
education
occupation
nationality
religion
ethnicity
family size
generation
social class
martial status
example of demographic segmentation
McDonalds targets people of all ages but the company meets its customers needs by segmenting based on age. playground and happy meals for children, lose change menu for teens, salads and McCafe for adults
psychographic segmentation
divides memebers of a broader target market in terms of their lifestyle and behaviour
lifestyle
includes
interests
leisure activities
beliefs
values
opinions
attitudes
behaviour
includes how the consumer treats products: usage
loyalty
special events
status
conveniance
benefits wanted
readiness
occastions/events
example of behaviour in psychographic segmentation
a gyms broad target market may be segmentated into 2 distinct groups
- those who enjoy spending their time in the gym
- those who are trying to get fit but dont like spending time in the gym
