Psychographic Segmentation- It is the science of using psychology and demographics to

better understand consumers. The buyers are divided into groups based on
psychological/personality traits, lifestyle, or values. It can be measured by VALS segmentation
framework. Its main dimensions are consumer motivation (horizontal dimension) and consumer
resources (vertical dimension).

Consumers are inspired by one of these primary motivations: ideas, achievement, and self-
expression.

Porter’s Five Forces Analysis- Five forces that determine the intrinsic long run attractiveness
of market or market segment: industry competitors, potential entrants, substitutes, buyers, and
suppliers. (Page- 285)

Threat of intense segment rivalry, Threat of new entrants, Threat of substitute products, Threat of
Buyer’s growing bargaining power, Threat of suppliers’ growing bargaining power.

Possible levels of segmentation-

Mass Market Multiple segments Single segments Individual as segments

Full market coverage- In Undifferentiated marketing/Mass marketing, the firm ignores segment
differences and goes after the whole market with one offer. It designs a marketing program for a
product with superior image that can be sold to the broadest member of buyers via mass
distribution and mass communications.

In Differentiated marketing, the firm sells different products to all the different segments of the
market. It creates more total sales than the undifferentiated but also increases the costs of doing
business.