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Group 1

Members

Assignment

Bases of
Segmentation

Tendekai B Boyiwa
Jonathan Mlambo
Nyaradzo Mapfumo
Cleopas Mudede
Hilton Muchabaiwa
Kudakwashe Chamisa

Market Segmentation
Market segmentation is a marketing strategy that
involves dividing a broad target market into sub
sets of consumers who have common needs and
applications for the relevant goods and services.
Why segment
to better understand the needs of a specific
customer base
Identify other uses for products that may not be
obvious
Identify other smaller groups that make their own
unknown subsets
Identify ways to enhance customer loyalty with
existing customers

Bases of Segmentation
1.Geographic
Market can be divided into different
geographical units like nations, states,
regions, cities or neighbourhoods.
For example national newspapers are
published and distributed to different cities
in different languages to cater to needs of
consumers.

Variables like climate , terrain , natural


resources and population also
influence product needs and wants

Bases of Segmentation
2.Demographic
Variables such as age, gender, family cycle,
income, occupation, education, religion, race
and nationality are used to divide the market.
Age teenagers, adults, retired. Markets
commonly segmented by age include clothing,
toys, music, cars, soaps , shampoos and foods.
Gender- male and female. Used in clothing,
cosmetics and magazines.
Income It affects the buying power and style
of living.

Demographic cont
Family cycle Needs vary according to
age , number of people in the household,
age of children.Housing, furniture,food and
cars are few of product markets segmented
by family cycle.Social class can be used to
segment a market as many companies
design products and services for specific
social classes.

Bases of Segmentation
3.Psychographic
This is when market is segmented on the
basis of their psychological makeup ie
personality, attitude and lifestyle.
Personality competitiveness, introvert,
extrovert,ambitious, aggressiveness etc
Lifestyle- basis of activities,
interests,beliefs and opinions eg companies
making cosmetics, alcoholic beverages and
furniture

Bases of Segmentation
4.Behavioural
Buyers are divided basing on knowledge of,
attitude towards, use of or response to a
product.
It also includes basing on occassions , user
status, usage rate , loyalty status and
attitude.
Occasion Buyers can be distinguished
according to the occasions when they
purchase a product,use a product or develop
a need to use a product eg Cadburys
advertising to promote product during

User status That is on the basis of non-user,


ex-user, potential user , first time user and
regular user.Large companies usually target
potential users whereas smaller firms focus on
current users.
Usage rate On the basis of light, medium and
heavy users.Heavy users are often small
percentage of market but account for high
percentage of total consumption so marketers
prefer to attract them and vary promotional
efforts accordingly.

Loyalty status- There are hardcore( buy


one brand all the time), split (loyal to two
or three brands), shifting( shift from one to
another) and switchers (show no loyalty to
any brand).

Disadvantages of
market segmentation
It is expensive as it takes time and money
Need for different marketing messages
Changes in appearance of product based on the
segment it is being sold to adds to production
costs.
If market not segmented effectively then all this
money will be wasted.
If segments are too narrow, its difficult to be
profitable.
Potential customers outside these groups may be
ignored and their business lost