Segmentation
L1
Involves subdividing markets, channels or customers into groups with different needs
Types:
Behavioural – product usage
Demographic – age, gender, etc
Geographical – location
Socio-economical – social class
L3 Why?
- Meet Customer Needs
- Enhanced Profits for Business
- Better Opportunities of Growth (Trade-up)
- Retain More Customers
- Target Marketing Communications
- Gain Share of the Market Segment
L4
- Segmenting the market too far may exclude customers
- It is more difficult to categorise customers and behaviour
Involves subdividing markets, channels or customers into groups with different needs
Types:
Behavioural – product usage
Demographic – age, gender, etc
Geographical – location
Socio-economical – social class
L3 Why?
- Meet Customer Needs
- Enhanced Profits for Business
- Better Opportunities of Growth (Trade-up)
- Retain More Customers
- Target Marketing Communications
- Gain Share of the Market Segment
L4
- Segmenting the market too far may exclude customers
- It is more difficult to categorise customers and behaviour