MarketSegmentationDemographicSegmentation(SeeP118-119)Dividingthemarket intogroupsbased onvariablesmarklinsuch as:Technk erfahren.-99HSTARTUPAgeGenderSTARTPACUNGFamilysize orlifecycleUTHESDERSSESIncomeMAthOccupationEducationReligionRaceGeneration......Most PpulrBases&Easiest lasure
6 Market Segmentation Demographic Segmentation (See P118-119) ◼ Dividing the market into groups based on variables such as: • Age • Gender • Family size or life cycle • Income • Occupation • Education • Religion • Race • Generation •
Market SegmentationRequirementsforEffective Segmentation.Size,purchasing power,Measurableprofiles of segments can bemeasured.AccessibleSegments can be effectivelyreached and served.SubstantialSegments are large orprofitable enough to serve·Segments mustrespondDifferentialdifferently to differentmarketing mix elements &programs.·Effective programs can beActionabledesigned to attract and servethe segments
7 • Size, purchasing power, profiles of segments can be measured. • Segments can be effectively reached and served. • Segments are large or profitable enough to serve. Measurable Accessible Substantial Differential Actionable • Segments must respond differently to different marketing mix elements & programs. • Effective programs can be designed to attract and serve the segments. Market Segmentation Requirements for Effective Segmentation
RequirementsforEffectiveSegmentation(SeeP120)Tobeuseful,marketsegmentsmustbeMeasurable:Thesize,purchasingpower,andprofiles of the segments can be measured.Certain segmentation variables are difficult tomeasure.For example,there are 32.5 million lefthanded people intheUnitedStates-almostequaling the entire population of Canada.Yet fewproducts are targeted toward this left-handedsegment. The major problem may be that thesegment is hard to identify and measure.and is exposed to certain media,its members willbedifficult toreach
Requirements for Effective Segmentation (See P120) ◼ To be useful, market segments must be ◼ Measurable: The size, purchasing power, and profiles of the segments can be measured. Certain segmentation variables are difficult to measure. For example, there are 32.5 million lefthanded people in the United States—almost equaling the entire population of Canada. Yet few products are targeted toward this left-handed segment. The major problem may be that the segment is hard to identify and measure. ◼ and is exposed to certain media, its members will be difficult to reach
Accessible:Themarket segments canbeeffectivelyreached andservedSuppose a fragrance company finds that heavy users of itsbrand are single men and women who stay out late andsocialize a lot.Unless this group lives or shops at certainplaces.Substantial:Themarket segments are large or profitable enough toserve.A segment should be the largest possiblehomogenous group worth pursuing with a tailored marketingprogram. It would not pay,for example,for an automobilemanufacturerto develop cars especially for people whoseheightis lessthanfourfeet
Accessible: The market segments can be effectively reached and served. Suppose a fragrance company finds that heavy users of its brand are single men and women who stay out late and socialize a lot. Unless this group lives or shops at certain places. Substantial: The market segments are large or profitable enough to serve. A segment should be the largest possible homogenous group worth pursuing with a tailored marketing program. It would not pay, for example, for an automobile manufacturer to develop cars especially for people whose height is less than four feet
Differentiable:Thesegmentsareconceptuallydistinguishableand respond differently to different marketing mixelements and programs.If married and unmarriedwomen respondsimilarlyto a sale on perfume,they do not constitute separate segments.Actionable:Effective programs can bedesigned for attractingand servingthe segments.For example,althoughone small airline identified seven marketsegments,its staff was too small to developseparatemarketingprograms for each segment
Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. If married and unmarried women respond similarly to a sale on perfume, they do not constitute separate segments. Actionable: Effective programs can be designed for attracting and serving the segments. For example, although one small airline identified seven market segments, its staff was too small to develop separate marketing programs for each segment