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the two steps in marketing segmentation process

1) Identifying groups with shared needs and characteristics (behavior, demo/geo/psycho

2) Combining these groups into large segments.


Market groups charateristics

Geographic - where are they
Demographic - who are they, age?
Psychographic - attitude, interest


Two goals of segmentation

- Identify people who are likely to be interested
- Develop a mix of effective messages that the consumers understand.


What are the behavioristic segmentations

- User-status
(solo/discount/aware(rejctores/repertoire - users)
- Purchase-occasion
when buy and use the product/service
- Usage-rate
use more - volume
- Benefit sought
high quality, low price, status


What are the geographic segmentsations

- Region
- Country size
- City size
- Zip code
- Types of stores


What are demographic segmentation

sex, age, ethnicity, education, occupation, income, and other quantifiable factors.

Geodemoographic segmentation= Demo and geo together.

Baby boomers

Millennials 2015 was between 18-34 year. 75 million


what is psychographic segmentation

Value, Attitudes, Personality and Lifestyle

View people as individuals with feelings.


Organizational buying behavior

Business markets
- manufactures, government agencies, wholesalers, retailers, bank.
E.g. raw meterial, electronic components

Business purchasing
- business people evaluate new product
- make sale in business market takes time

Industrial classification system
- industrial consmers need different product depending on their business.


What is Market Concentration

Many counties markets for industrial goods are concentrated in one refion or several metropolitan areas.


what does Aggregating Market Segments involves
2 bullets

(1) selecting groups that have a mutual interest in the product’s utility
(whole market and specific market

(2) reorganizing and aggregating (combining) them into larger market segments based on their potential for sales and profit.
(Homogeneous and profit Potential


what is the two bullets of target market process

1) Target market selection
- which offer the greatest profit.
One or more segments
and a secondary target

2) Marketing mix.
- To match product to market.


What are the 4 faces in PLC

- Introduction
- Growth
- Maturering
- Decline


What are the to factors of Product element.

Product Classification
- The way a company classifies its product.
- by markets,
- by the purchasing habits
- by the consumption rate
- by physical attributes.

Product Positioning
- ranks the product in the prospect’s mind.


What are most valuable brands

- Apple
- Microsoft
- Google


What are the functions of product packaging

- Packaging should offer high visibility

- Protect and make it easier to use.

Consumer Appeal
- Size color, material and shape.



how can you place your ad?

Direct (sell direct to end user)
Indirect sale (reseller, middleman)
Vertical (franchising)


What is direct distribution

Sell directly to end users.
- Network marketing
Sign up for friend
- Buying club


What is indirect distribution


- intensive Distribution
Candy soft drink everywhere
- Selective Distribution
Some stores
- Exclusive Distribution
Agreement selected wholesalers.


What are Vertical distribution?

The Growth of Franchising.
distribution system that serves a group of stores.


What is the bullets in the communication mix

Personal communication
○ Person to person

Non Personal communication
○ Medium PR activities.

Personal selling
○ Sales persons. Directly

○ Mass or nonpersonal selling

Direct Marketing
○ Taking the store to the consumer.
○ Telemarketing

Public Relations
○ Special events
Collateral Materials
Catalogs, brochures, films, sales kits,

Sales Promotion