market segmentation

• • market segmentation helps to:
  • 1. identify the target market
  • 2. identify the marketing mix
  • 3. identify the marketing objectives
• location

  • some products vary by region
  • cater to specific needs of a particular region
  • e.g Glasgow vs cockney
• • income
  • how much money consumers have
  • low incomes - value for money purchases
  • high income - style, design, quality
• • lifestyle
  • hobbies, interests, personal values
• • age
  • Different age means different things they are looking for
  • people will pay higher price for a product aimed specifically at them
• • demographics 
the study of the statistical differences that exists within a population, both now and in the future
• • other demographic factors
  • gender - men and women very different
  • race - cosmetics, food, music
  • religion - clothing, food
• • market map 
a diagram that measures where existing brands sit on a two factor grid, e.g young/old compared with high/low price basically the square grid thing that has different chocolates
• • Market Mapping
  • Gaps may exits because there is no demand for the product
  • Or its not possible for a business to fill two contrasting needs like low price but high quality
• How businesses use market segmentation to target customers:

  ● identifying market segments: location, demographics, lifestyle, income, age

  ● market mapping to identify a gap in the market and the competition.
• market segment-subsets within a market that have been identified as a result of market segmentation
• Lifestyle segmentation-

  • 
grouping people by common characteristics in how they live, from their participation in sports and leisure to their views on the environment, music tastes, or weird passions like trains and coins