market segmentation

• Market segmentation definition?

  Process of splitting a target market into different groups.
• Why do we use market segmentation?

  To make it easier to develop products aimed at certain groups
• What groups are they usually split up like?

  > Location

  > Demographics

  > Income

  > Behaviour

  > Lifestyle

  > Age
• What use is the location groups?

  Geographical segmentation. It may be used to consider what type of product to sell where, for example, walking boots in lake district.
• Demographic groups - whats the use?

  Characteristics of a person, So the age, gender, religion, race, nationality. Who they want to sell/aim the products to. For example, Toys and pensions.
• Behaviour grouping - whats the use?

  Purchases at different times in the year, so birthdays, holidays, events.

  Card and gift shops thrive with this grouping
• what is this an example of?

  Market mapping.

  
• Lifestyle grouping - Whats the use?

  Considers what sort of life's the consumer lead. E.g. Hobbies, interests, spare time uses. For example camera equipment targets photographers or even plane spotters.
• Income grouping - Whats the use?

  Considers disposable income, very important for certain

  products, for example luxury cars, will look for high incomes. Poundland or Cheap shops will look for low.
• What is market mapping?

  The process of using a graph to plot competitors and their products to understand behaviours and spot gaps in the market. They are also useful to see who competition will be and the other available services in the sector.