đź“š Seth MB


Search IconIcon to open search

Segmentation, Targeting and Positioning

Last updated Dec 7, 2022 Edit

Market segmentation involves dividing a market into parts that reflect different customer needs and wants.

# STP model

# What is market segmentation?

The process of splitting the market into different demographics to help gauge where customer needs and wants.

# Behavioural Segmentation

Analysing a market based upon factors such as habits like purchase frequency, method of purchase and other characteristics.

# Geographic Segmentation

Defining market categories based upon where people live. Looks at different sizes of regions. IE clothing companies may look at the colder regions of the UK to sell their warm clothing, whilst a farming goods company might look at regions with the highest agricultural activity.

# Demographic Segmentation

Splitting the market based upon the traits of the population. This could be anything from age to religion, gender, race, education.

# Cons of market segmentation

# Pros of market segmentation

# 3 characteristics that could be used in demographic segmentation

# Income segmentation groups

A—higher managerial such as chief executives and directors B—Intermediate managerial such as solicitors, accountants and doctors C1—Supervisory, clerical or junior professional such as teachers and junior managers C2—Skilled manual such as plumbers, electricians and junior managers. D—Semi and unskilled workers such as refuse collectors and window cleaners E—Pensioners, casual workers, students and unemployed.

# Segmentation Methods

Market Size: The volume of sales for a product

Brand: A name, sign, symbol, design or slogan linked to a particular product or service

Primary market research: The collection of data on a first hand basis

Market Mapping: Various market conditions that are plotted on a map.