Segmentation

• Segmentation is a 3 step

  • step 1 - segment the market into groups of customers with similar characteristics
  • step 2 - decide on what segment of the market to target
  • step 3 - position the product on the market by identifying how it will be viewed in relation to its competitors
• Market segmentation is the classification of customers or potential customers into sub-groups, each of which responds differently to different products or marketing approaches
• Segmentation helps to identify different types of consumer and different wants and needs
• Segmentation methods include

  • demographic
  • geographic
  • income
  • behavioural
• Demographic look at the social and economic characteristics of individuals and households