Market Segmentation Flashcards
Geographic segmentation
divides markets according to geographic criteria. In practice, markets can be segmented as broadly as continents and as narrowly as neighbourhoods or postal codes.
Examples of geographic segmentation
- COUNTRY: e.g. Brazil, Canada, China, France, Germany, India, Italy, Japan, UK, US.
- REGION: e.g. North, North-west, Mid-west, South, Central.
- POPULATION DENSITY: e.g. central business district (CBD), urban, suburban, rural, regional.
- CITY or TOWN size: e.g. under 1,000; 1,000–5,000; 5,000–10,000 … 1,000,000–3,000,000 and over 3,000,000.
- CLIMATIC ZONE: e.g. Mediterranean, Temperate, Sub-Tropical, Tropical, Polar.
Demographic segmentation
Segmentation according to demography is based on consumer- demographic variables such as age, income, family size, socio-economic status, etc.
Demographic segmentation assumes…
assumes that consumers with similar demographic profiles will exhibit similar purchasing patterns, motivations, interests and lifestyles and that these characteristics will translate into similar product/brand preferences.
Examples of demographic segmentation
- Age: e.g. Under 5, 5–8 years, 9–12 years, 13–17 years, 18–24, 25–29, 30–39, 40–49, 50–59, 60+
- Gender: Male, Female.
- Occupation: Professional, self-employed, semi-professional, clerical/ admin, sales, trades, mining, primary producer, student, home duties, unemployed, retired.
- Socio-economic: A, B, C, D, E, or I, II, III, IV or V (normally divided into quintiles).
- Marital Status: Single, married, divorced, widowed.
- Family Life-stage: Young single; Young married with no children; Young family with children under 5 years; Older married with children; Older married with no children living at home, Older living alone.
- Family size/ number of dependants: 0, 1–2, 3–4, 5+
- Income: Under $10,000; 10,000–20,000; 20,001–30,000; 30,001–40,000, 40,001–50,000 etc.
- Educational attainment: Primary school; Some secondary, Completed secondary, Some university, Degree; Post graduate or higher degree.
- Home ownership: Renting, Own home with mortgage, Home owned outright.
- Ethnicity: Asian, African, Aboriginal, Polynesian, Melanesian, Latin-American, African-American, American Indian etc.
- Religion: Catholic, Protestant, Muslim, Jewish, Buddhist, Hindu, Other.
Generational segments
demographic segmentation
refers to the process of dividing and analysing a population into cohorts based on their birth date. A generation is defined as “a cohort of people born within a similar span of time (15 years at the upper end) who share a comparable age and life stage and who were shaped by a particular span of time (events, trends, and developments).”
Examples of generational segments
demographic segmentation
- Builders: born 1920 to 1945.
- Baby boomers: born about 1945–1965.
- Generation X: born about 1966–1976.
- Generation Y: also known as Millennials; born about 1977–1994.
- Generation Z: also known as Centennials; born 1995–2015.
Generational segments assumes…
demographic segmentation
assumes that people’s values and attitudes are shaped by the key events that occurred during their lives and that these attitudes translate into product and brand preferences.
Behavioural segmentation
divides consumers into groups according to their observed behaviours.
Examples of behavioural segmentation
- Purchase/Usage Occasion: e.g. regular occasion, special occasion, festive occasion, gift-giving.
- Benefit-Sought: e.g. economy, quality, service level, convenience, access.
- User Status: e.g. First-time user, Regular user, Non-user.
- Usage Rate/Purchase Frequency: e.g. Light user, heavy user, moderate user.
- Loyalty Status: e.g. Loyal, switcher, non-loyal, lapsed.
- Buyer Readiness: e.g. Unaware, aware, intention to buy.
- Attitude to Product or Service: e.g. Enthusiast, Indifferent, Hostile; Price Conscious, Quality Conscious.
- Adopter Status: e.g. Early adopter, late adopter, laggard.
- Scanner data from super market or credit card information data.
