SEGMENTATION

WHAT ARE MARKET

SEGMENTS?
A market segment is a group of customers
who share similar inclinationa toward a
brand.

One - to - one Marketing (non profitable)

Marketing segmentation ( just right)

Mass marketing ( low customer satisfaction)

Mass marketing - means that all
customers would be treated the
same.
One - to - one marketing - means
that each customer serves as his
or her own segment.

Niche marketing - is a type of

segmentation in which the
company strategically focuses,
targeting smaller market with
particular needs that the company
can serve well.
 DEMOGRAPHIC
SEGMENTING CONSUMERS

Demographic - (e.g.., age ,

gender,income and education,
household life cycle, number
of kids, marital status)

- Geographic Bases - (e.g., country,

area ( e.g., Northeast, vs. Southern
CA) climate, market size)
Behavior (e.g., media ( magazines, cable,
online, movies), loyalty programs,
purchase frequency, copurchases
patterns, affiliations (e.g., political
party, alma mater)

Attitudes (e.g., awareness,

involvement, price sensitivity, risk
tolerance, convenience, prestige, traits
•Geographic Segmentation: Segmenting the
market based on geographic variables such
as location, region, country, city size,
climate, and population density.

Psychological Segmentation: Segmenting

the market based on psychographic
variables such as lifestyle, personality,
values, attitudes, interests, and behaviors.
 Lifestyle Values Segment

Vals segments people based on three

motivations:
1. ideals
2. achievement
3. self- expression

Ideals- people are guided by knowledge

and principles.
These consumers buy the newest laptop
technology, are the first to adopt e - readers,
do extensive information searches comparing
all the brands before they buy just about
anything.
 Achievement - consumers buy
products and services that
demonstrate success to others.
They drive sexy, expensive cars, and they
carry, wear, and drink high - end brands.

Self- expression - people desire social or

physical activity, variety, and risk.
These consumers are the first to go bungee
jumping, heli - skiing, kite surfing, or any
other extreme sport, and they can be frickle.
Behavioral Segmentation: Dividing the
market based on consumer behavior,
including purchasing behavior, usage
patterns, brand loyalty, product
benefits sought, and decision-making
processes.
 Segmentation In Action

Segmentation in action - refers to the

practical application of segmentation
strategies in various business contexts
to target specific groups of customers
effectively.
HOW DO MARKETERS SEGMENT THE
MARKET?
Marketers identify segment best when
iterating between two approach:
A managerial, top-down ideation - ideas
and decisions come from upper
management and are then implemented
throughout the organization.

- A customer-based, bottom-up
ideation - ideas and feedback come
directly from customers and are used to
drive innovation and decision-making
within the organization.
How to evaluate the Segmentation Scheme

The iteration between manager's good sense

and the customer-based data continues
when evaluating potential segmentation
scenarios.

Data to identify Segments- if one

element of an iterative segmentation is
a smart marketer, the other element is
good customer data.
 Databases to access segments- A
related question is whether databased
are available that identify potential
customers because, after you identify
segments, you want to access the
customers in the target segments.
 Profitability Matters- Most marketers are curious
about the relative sizes of the identified segments, but
it's not size that matters so much as how profitable the
segment is or is likely to be Segment size is just
numbers of customers, but profitability is smarter
information:

How frequently do the customers purchase? How large

(in terms of money) is their purchase? How price (in)
sensitive are they? How stable is the segment? What is
its growth potential?
 Fit with Corporate Goals-

An upscale customer segment always seems attractive,

but if your marketplace image is that of a store with
EDLP (everyday low prices), you'd confuse existing
customers if you tried to appeal to a them with new
high-end products.
Further, new high-end customers might not pay
attention to your ads because, to date, your offerings
hadn't been relevant to them.
 Actionable-
Lots of segmentation schemes f
ail because marketers focus on the wrong criteria.
Specifically, the statistics and clusters might be crystal
clear (eg, four clear clusters of customers), and even the
interpretation and managerial meaning might be clear
(e.g., one segment in particular seems to be a great fit).

However, the segmentation is useless if the marketer is

at a loss as to how to put it into action.
 WORKING IN TEAMS
Working in teams- is important because it
fosters collaboration, synergy, and
productivity. Teams allow individuals to
leverage diverse perspectives, skills, and
expertise to achieve common goals more
effectively. Choosing the right leader is crucial
because they provide direction, guidance, and
motivation to the team. A good leader
facilitates decision-making, resolves conflicts,
and fosters a positive work environment,
ensuring that team members are engaged,
accountable, and working towards shared
objectives. In essence, the right leader ensures
that the team operates cohesively and
efficiently, maximizing its potential for
success.
 Dealing with uncooperative members as a
team leader requires a proactive and
empathetic approach. team leaders can
effectively manage uncooperative behavior
and foster a positive and productive team
environment. If they follow up, seek
collaboration, encourage accountability, offer
support, provide feedback, set clear
expectations and to have open communication
 Managerial Recap
• Marketers create segments because
customers vary in their preferences, and
pleasing all customers with one product is
usually impossible.

Market segments are groups of

customers with similar reactions to the
company's brand

Segments can be formed on nearly any

kind of differentiating information, eg,
demographics, geographics, psychological
attitudes, and marketplace behaviors.
 Segments are best created iterating
between the managerial understanding of
the marketplace and good data that may
be processed (eg, via cluster analysis) to
identify similarities in purchasing
propensities.

The resulting segmentation scheme

should be based on data, sustained by a
database to help access the customers, be
profitable enough to serve, be sensible
with respect to the larger corporate goals
and planning, and, finally, be
implementable.
 GROUP 3 :
PINO, CHERLY JOY
VILLEGAS, LORRY LYN
MAGLASANG, JHANZEN
SUMAMPONG, EMMA LYN