Definition: Building the right relationships with the right customers.
Market segmentation-To identify the bases for segmenting the market.
-develop segment profiles.
Target Marketing-Develop marketing of segment attractiveness.
-Select target markets.
Market Positioning-Develop positioning for target segments
-Develop a marketing mix for each segment.
Market segmentation is dividing a market into distinct groups with distinct needs,characteristics, or behaviour who might require separate products or marketing mixes.
Segmenting customer markets
Geographical segmentation-tries to divide markets into different geographical units: these units include:
• Regions: e.g. in the UK these might be England, Scotland, Wales Northern Ireland or counties or major metropolitan areas
• Countries: perhaps categorised by size, development or membership of geographic region
• City / Town size: e.g. population within ranges or above a certain level
• Population density: e.g. urban, suburban, rural, semi-rural
• Climate: e.g. Northern, Southern
Geographic segmentation is an important process - particularly for multi-national and global businesses and brands. Many such companies have regional and national marketing programmes which alter their products, advertising and promotion to meet the individual.
Demographic segmentation-consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality.
As you might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups.
This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process.
Here are the demographic segmentations narrowed down!
Age
Consumer needs and wants change with age although they may still wish to consumer the same types of product. So Marketers design, package and promote products differently to meet the wants of different age groups. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments).
Life-cycle stage
A consumer stage in the life-cycle is an important variable - particularly in markets such as leisure and tourism. For example, contrast the product and promotional approach of Club 18-30 holidays with the slightly more refined and sedate approach adopted by Saga Holidays.
Gender
Gender segmentation is widely used in consumer marketing. The best examples include clothing, hairdressing, magazines and toiletries and cosmetics.
Income
Another popular basis for segmentation. 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), Airtours holidays, and discount clothing retailers such as TK Maxx.
Social class
Many Marketers believe that a consumers "perceived" social class influences their preferences for cars, clothes, home furnishings, leisure activities and other products & services. There is a clear link here with income-based segmentation.
Lifestyle
Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. Unfortunately, there are many different lifestyle categorisation systems, many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns!
Psychographic segmentation- Lifestyle, social class, and personality-based segmentation.
It considers a number of potential influences on buying behaviour, including the attitudes, expectations and activities of consumers. If these are known, then products and marketing campaigns can be customised so that they appeal more specifically to customer motivations.
The segments for psychograpic:
Lifestyle – different people have different lifestyle patterns and our behaviour may change as we pass through different stages of life. For example, a family with young children is likely to have a different lifestyle to a much older couple whose children have left home, and there are, therefore, likely to be significant differences in consumption patterns between the two groups. One of the most well-known lifestyle model.
- Dependent (e.g., children still living at home with parents);
- Pre-family (with their own households but no children);
- Family (parents with at least one dependent child); and
- Late (parents with children who have left home, or older childless couples).Each group is then further According to income and occupation.
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1 comments for this post
get some links in it - some ad clips to show STP in action