STP - Segmentation

Question 1

What is segmentation?

Answer 1

‘The top down process of grouping customers in markets with some similarities into smaller, more homogenous segments ‘ Kotler 1996
-Goal is to identify specific customers needs and design a program to satisfy those needs

Question 2

What is geographic segmentation?

Answer 2

• Defines customers according to their location

- They are easy to define, measure and most the information is publicly available

Question 3

What is psychological segmentation?

Answer 3

Lifestyle segmentation

Question 4

What are the 4 psychological segmentation and who came up with it?

Answer 4

Plummer 1974:

1) Activities - Work,shopping,holiday and social life
2) Interests - Whats important to the consumer
3) Opinions - Attitudes, beliefs
4) Demographics - age,income

Question 5

What are the benefits of psychodynamic segmentation?

Answer 5

• open the door to a better tailored, more subtle offer to the customer on all aspects of the marketing mix
• Valuable for products that are more psychological than functional

Question 6

Whats involved in behavioural segmentation?

Answer 6

Usage Rate - The rate at which the product is consumed
Benefits sought -e.g buying chilled ready meal may ease preparation time
Loyalty - Marketing is more focused on keeping those who are loyal
Readiness to purchase - Can people just buy your product when they want?
End use? - will the end product mean its worth being sold in different sized packages