topic 3-Market Segmentation

• What can you segment the market into?

  Geographical, behavioral, psychological, demographical.
• What is market segmentation?

  Dividing the market/potential customers into smaller groups based on their share characteristics or needs.
• What is geographical segmentation?

  Dividing the market based on location.
• What is demographical segmentation?


  Dividing the market based on income, age, gender, family size, and religion.
• What is behavioral segmentation?

  Dividing the market based off lifestyle, hobbies, interests, shopping trends.
• What is psychological segmentation?

  Dividing the market based off beliefs, social class, interests, opinions.
• What are the benefits of segmentation?

  • Better target promotional activity
  • Able to charge higher prices
  • Higher levels of customer loyalty
• What are the drawbacks of segmentation?

  • Increased costs with research, development, and marketing efforts
  • Missed opportunities to target different customers