Market Segmentation

Market SegmentationThree Parts

• Demographics

• Geographic

• Psychographics

Demographics

Age –Baby Boomers, Generation X, Generation Y

Gender-

Income- Disposable money left after taxes vs. Discretionary income money left after paying basic living expense.

Martial Status- 50.7 % 2000’s compare to 80% in 1950’s

Ethnic Background – US is becoming multiculture and ethnically diverse.

Geographic

• Refers to segmentation of the market based on where people live.

• People live certain area

• Segment the market geographically you refer – local, regional, national or grobal

• Need to know where your target lives

Psychographics

• Involves grouping people with similar lifestyles and

• Activities – list all activities that you are involved in. You will find a magazine about that activity.

• Attitude – eating healthier, becoming physically fit, taking responsibility for your health.

• Personality & Values – likes, dislikes, and characteristic

Mass Market vs. Segmentation

• Mass- Single strategy• Reach all customers

• Segmentation-• Narrow down and

define with extreme precision

• More selective on ads