Segmentation

Definitions:

‘Whether within or across national boundaries, effective market segmentation delineates segments whose members are similar to one another in one or more characteristics and different from members of other segments’ (Solomon et al 2010)

Description:

Segmentation is the process which is taken in order to separate and categorise buyers into different sectors. The sectors usually consist of buyers who have very similar desires, needs and interests as well as buyer behaviour. Segmentation is usually set in order to group buyers which make it easier to for organisations to market their product or service. For example Mercedes aims their car at high class people who can afford expensive luxuries, therefore they target their product at this segment in the market.

Each segment must be unique and have enough characteristics in order for there to still be a profit made. Each consumer has their own personality and traits however these can be sectioned into categories which can be aimed at by a marketing mix, therefore each segment must ensure it has the power to use the marketing mix to reach its consumers. The different segments should also be long-lasting in order for organisations to be able to meet their need sufficiently as if they do not last very long you can’t really focus on it in particular.

The most common areas in which consumers are usually segmented in are:

Geographic – This is usually based on things such as region, climate, and population density and population growth rate.

Demographic- This is based on age, gender, ethnicity, education, occupation, and family status.

Psychographic- Focuses on things like values, attitudes, and lifestyle.

Behavioural- This aims at usage rates and patterns, price sensitivity, brand loyalty and benefits sought.

Some examples of products which take into account segmentation are as follows:
I found a Specsavers advert which is directly aimed at the Over 60's market segment-

This Kellogs Special K breakfast cereal targets women in specific who are either dieting or wanting to follow a healthy eating plan. This is aimed at a specific psychographic audience.

Another advert which I found looks at membership and aims to encourage people to continue to shop at tescos in order to gain points and get discounts. This advert is not only aimed at a behavioural segment but also aims at families with young children.

Video of segmentation:

http://www.youtube.com/watch?v=llJNwdV-G88

Websites:

http://www.netmba.com/marketing/market/segmentation/

http://www.learnmarketing.net/segmentation.htm

References:

1. Consumer behaviour: A European perspective: Fourth Edition:2010                       Michael R.Solomon, Gary Bamossy, Soren askegaard, Margaret K. Hogg