Market segmentation by Daisy

Market Segmentation

xxing1090 — 2017-02-13 16:25:20 UTC

Dividing the total market into smaller groups of people who share specific needs and characteristics is the essence of Market segmentation.

Analyzing Markets

xxing1090 — 2017-02-13 16:27:00 UTC

Businesses may segment a market by:
demographics
psychographics
geographics
product benefits

Demographics

xxing1090 — 2017-02-13 16:29:35 UTC

made of:
age
gender
income
ethnic background

Demographics: Income

xxing1090 — 2017-02-14 15:56:18 UTC

Marketers want to know how much money is available for spending on different products.
Disposable Income=money left over after taxes.
Important for companies that produce and distribute necessities
Discretionary Income=money left after paying for food, shelter, and clothing.
Important for companies that produce and distribute luxury items.

Demographics: Ethnicity

xxing1090 — 2017-02-14 16:00:35 UTC

Marketers often segment the market by ethnicity. The three larges ethnic groups within the United States are German, African-Americans, and English, Scottish, and/or scotch Irish. These three groups will account for 44 percent of the U.S. Population in 2016.

Psychographics

xxing1090 — 2017-02-14 16:05:51 UTC

Psychographics involves studies of consumers based on social and psychological characteristics.
In addition to segmenting people by their leisure time interests, marketers observe trends and changes in households, the economy, politics, and the workplace.

Psychogaphics

xxing1090 — 2017-02-14 16:11:46 UTC

psychographic variables are any attributes relating to personality, values, attitudes, interests, or lifestyles.  They are also called IAO variables (for interests, Activities, and Opinions).

Frameholds

xxing1090 — 2017-02-14 16:18:02 UTC

http://www.strategicbusinessinsights.com/vals/ustypes/innovators.shtml

Geographics

xxing1090 — 2017-02-14 16:21:10 UTC

Geographics regers to segmentation of the market based on where people live Marketers study geographics in relation to:
ethnic concentrations
age
ethnic background
income

Benefits

xxing1090 — 2017-02-14 16:26:00 UTC

Segmenting a market by product benefits involves studying consumers' needs and wants
Examples: Different shampoos are marketed to people with different hair care needs.