9 29 Notes Bases for Segmentation Consumer Markets Geography o Global region o Market size o Market density o climate Demographics o Age o Gender o Income o ethnicity Psychographics Benefits Sought o Grouping customers into market segments according to the benefits they seek from the product Usage Rate o Dividing a market by the amount of product bought or consumed o 80 20 principle 20 of all customers generate 80 of the demand Bases for Segmentation Business Markets Producers Resellers Government Institutions Buying Processes Satisfiers place an order with the first familiar supplier to satisfy product and delivery requirements Optimizers consider numerous suppliers and study all proposals carefully before selecting one Buyers Personal Characteristics Demographic characteristics Decision style Tolerance for risk Confidence level Job responsibilities Steps in Segmenting a Market 1 2 3 4 5 6 Select a market for study Choose bases for segmentation Select descriptors Profile and analyze segments Select markets Design implement and maintain marketing mix Strategies for selecting target markets Undifferentiated strategy Concentrated strategy Multisegment strategy Positioning developing a specific marketing mix to influence potential customers overall perception or a brand product line or organization in general Product differentiation distinguish their products from those of competitors
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