Identifying Market Segments

and Targets
By: Jebeth V. Rivera
 Market Segmentation
Market segmentation divides a market into
well-defined slices.

A market segment
consists of a group of
customers who share
similar set of needs and
wants.
Bases for Segmenting
Consumer Markets
Geographic Segmentation

- divides a market into

geographical units such as
nations, states, regions, counties,
cities, or neighborhoods.

Grassroots marketing –
activities concentrate on getting
as close and personally relevant
to individual customers as
possible.
Example: Nike

- sponsorship of local school teams,

expert-conducted clinics, and provision
of shoes, clothing, and equipment.
- provides different mixes of banking
services in its branches depending on
neighborhood demographics.
Demographic Segmentation
- we divide the market
on variables such as
age, family size, family
life cycle, gender,
income, occupation,
education, religion, race,
generation, nationality,
and social class.
Age and Life Cycle

Life Stage
Gender

Income
 Generation

1. MILLENNIALS (GEN Y)

2. GEN X
 Generation

3. BABY BOOMERS
4. SILENT GENERATION
Race and Culture
Psychographic Segmentation

In psychographic
segmentation, buyers
are divided into
different groups on
the basis
psychological/person
ality traits, lifestyle, or
values.
VALS Segmentation System
 Behavioral Segmentation
Needs & Benefits

Decision Roles (Initiator, Influencer,

Decider, Buyer & User)

User and Usage – Real User &

Usage-related Variables
What are the variables related tousers?

-Occasions
-User Status
-Usage Rate
-Buyer-Readiness Stage
-Loyalty Status (Hardcore, Split, Shifting
& Switchers
-Attitudes
-Multiple Bases
 Behavioral
Segmentation
Breakdown
Effective Segmentation Criteria
-Measurable
-Substantial
-Accessible
-Differentiable
-Actionable
 Evaluating and Selecting the
Market Segments

-Full Market Coverage

-Multiple Segment Specialization
-Single-Segment Concentration
-Individual Marketing