Transcript Market Segmentation

November 11, 2010
Definition of
1.
Channel Management
Marketing
2.
Financing
Purpose of
3.
Marketing Information
Management
4.
Pricing
5.
Product / Service
Management
6.
Promotion
7.
Selling
Marketing
Marketing Concept
7 Functions of
Marketing
 Includes marketing research
 You can’t sell your product if you don’t
know who your customers are!
 Marketing research is used for market
segmentation, the process of classifying
customers in a market into smaller groups.
 Push in your chair.
 Line up in the middle of the
classroom, from the front to the back.
Order does not matter.
 Listen for instructions 
Move to the
FRONT of the
room if…
Move to the
BACK of the
room if…
You consider
yourself to have
more traditional
tastes. You
know what you
like, and you
stick with it.
You consider
yourself to have
trendier tastes.
You like change,
and you look for
a fun or modern
appeal.
Move to the LEFT
side of the room
if…
You are a
healthconscious
eater.
Move to the RIGHT
side of the room
if…
You prefer to
eat what tastes
good.
Traditional
Trendy
Healthy
Tasty
Cheerios
Special K
Raisin Bran
Total
Frosted Flakes
Rice Krispies
Froot Loops
Mini-Wheats
Kashi
Honey Bunches
Life
Organic Cereals
Lucky Charms
Cookie Crisp
Cap’n Crunch
Cinnamon Toast
Crunch
 Line up in the middle of the
classroom, from the front to the back.
Order does not matter.
 Listen for instructions 
Move to the
FRONT of the
room if…
You prefer the
busy, fast pace
life of the city.
Move to the
BACK of the
room if…
You prefer the
calm, laid back
pace of the
country.
Move to the LEFT
side of the room
if…
You prefer
warm weather.
Move to the RIGHT
side of the room
if…
You prefer cold
weather.
Warm
Cold
City
Florida
Nevada
California
Washington
New York
Illinois
Country
Texas
California
Colorado
Maine
Classification of
customers by wants
and needs
Creates smaller,
more precise target
markets
 Group of people
identified as the
most likely to
become customers
 These are the
people a business
wants to reach with
their goods or
services!
Demographic
Geographic
Ways to
Segment a
Market
Psychographic
Behavioral
Definition
Refers to
statistics that
describe a
population in
terms of
personal
characteristics
Examples
 Age
 Gender
 Income
 Marital Status
 Ethnic Background
 Education
 Occupation
Definition
Based on where
people live
Examples
 Local
 Regional
 National
 Global
Definition
 Grouping people
with similar
lifestyles
 Grouping people
with shared
attitudes, values,
opinions
Examples
 Activities
 Attitudes
 Personality
 Values
Definition
 Involves looking at
the benefits desired
by consumers, at
shopping patterns,
and at usage rates
 Sometimes referred
to as Product Benefit
segmentation
Examples
 Teenagers spend
about $50 a month
on entertainment.
 Teenage girls spend
15% more on music
than teenage boys.
 Today’s young adults
desire affordable
luxuries.
 On your handout, decide if each item is:
o Demographic
o Geographic
o Psychographic
o Behavioral
 Label each with a D, G, P, or B.
 Where have you seen or completed a
survey like this before?
 How can marketers use this
information?
 How else can businesses collect this
kind of information from customers?
 Market segmentation
characteristics help to create
customer profiles.
 A customer profile is a list of
information or common
characteristics about a target
market.
You will use a profile to identify products
potentially targeted to your customer.
Market Segmentation
Target Market
Segmentation Factors
Customer Profiles