When a business decides to sell a product it is highly unlikely that it can target everybody

Why? Product may not be to everybody’s taste Company may not be able to afford to market to

everybody

It must decide who are the most appropriate to targets are e.g. who is most likely to buy/ use the product

Package Holiday to TenerifeChild Size Pair of Boxing GlovesChild Size Horse Riding HelmetSouthampton Football ShirtBroadsheet Newspaper Tabloid Newspaper

Age Companies can market

their product to a particular age group

Companies will select an age range e.g. 4-10 years old, 20-35, Over 50 etc.

Examples include: Baby clothes, retirement homes, Just Seventeen, Shoot, Pokemon cards

Gender

Many products and services are aimed at either men or women.

This provides a much easier target for the company

Women’s magazines, clothes shops and beauty spa’s

Men’s barber, sports magazines and clothes

Geographical Area

Some products are only suitable to particular areas

Companies will target areas where their product is most likely to be successful

It is unlikely that you would sell many Chinese books in bookstore in Douglas

Manx flag wouldn’t sell too highly in Japan!

Income Markets can also be divided upon

the education/ income of a person

Basis for segmentation is those with higher education earn more money

Often divided into a number of classes:

–Class D: Semi Skilled Workers (factory workers)–Class E: Unskilled Workers, Unemployed, Low income groups

–Class A: Professionals, doctors, lawyers,–Class B: Managers, Teachers, Accountants–Class C: Skilled Workers, Management Assistant

Interest or Hobby

Company will target people with specific interests e.g. all support one team, all play a particular sport

Important to remember that everyone is in more than one market segment e.g. 10-15 year olds who support Liverpool

Market Segmentation involves breaking the market into smaller groups and targeting them with your product

There are 5 ways to segment the market

Age - Interests or Hobby

Gender - Education/ Income

Geographic location