Market Segmentation Strategies

Market Segmentation

• Dividing a market into smaller segments with distinct needs, characteristics, or behaviors to require separate marketing strategies or mixes.
• Types of market segmentation: segmenting consumer markets, segmenting business markets, and segmenting international markets.

Requirements for Effective Segmentation

• Not specified in the text, but generally includes factors such as measurability, accessibility, and profitability.

Types of Segmentation

Demographic Segmentation

• Divides the market into segments based on variables such as:
  • Age
  • Life-cycle stage
  • Gender
  • Income
  • Occupation
  • Education
  • Religion
  • Ethnicity
  • Generation

Psychographic Segmentation

• Divides a market into different segments based on:
  • Social class
  • Lifestyle
  • Personality characteristics

Behavioral Segmentation

• Divides a market into segments based on:
  • Consumer knowledge
  • Attitudes
  • Uses of a product
  • Responses to a product

Intermarket Segmentation

• Forms segments of consumers who have similar needs and buying behaviors, even though they are located in different countries.

Target Market

• A set of buyers who share common needs or characteristics that the company decides to serve.

Marketing Strategies

Differentiated Marketing

• Targets several different market segments and designs separate offers for each.

Concentrated Marketing

• Targets a large share of a smaller market.

Micromarketing

• The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

Product Positioning

• The way the product is defined by consumers on important attributes.

Competitive Advantage

• An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

Value Proposition

• The full mix of benefits upon which a brand is positioned.

This quiz covers the different types of market segmentation, including consumer, business, and international markets, as well as the requirements for effective segmentation. Test your knowledge of marketing strategies and mixes!