Market Segmentation

Involves dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.

Each subset of consumers have common needs or characteristic.

ISSA

Identification: Can identify and measure characteristic.

Sufficiency: Size and profitability of segment.

Stable: Segment is stable in terms of need, demographics, and psychological factors.

Accessibility: Economically accessible.

Segmenting: Select a market, apply those segmentation variables that are useful in helping to differentiate between consumer segments, and then assess each segment and decide on which should be targeted with marketing messages.

Targeting:Select the number of groups to be targeted and then rank them in order of importance. Develop marketing strategies

• Positioning: Select meaningful attributes that
• will help differentiate the product/service from its competitors. Apply positioning through marketing strategy and tactics

Concentrated Marketing: Targeting one segment with a unique marketing mix.

Differentiated Marketing: Targeting several segments with distinct, individual marketing mixes.

PP DUG BUSH

• Psychograghic (activities, interests, opinions)
• Psychological (needs-motivation, personality)

• Demographic
• Use Related
• Geographic

• Benefit (Funtional or Emotional)
• Use situational
• Sociocultural
• Hybrid