Psychographic or Lifestyle Segmentation Lastly, we come to psychographic or lifestyle segmentation, based upon multivariate analyses of consumer attitudes, values, behaviors, emotions, perceptions, beliefs, and interests.
A market segment might represent a large percentage of the population, but a small part of the market.
Typically, verbatim comments from consumers are used to build batteries of psychographic or lifestyle statements these two terms are used interchangeably.
This is the era of market differentiation based on demographic, socio-economic and lifestyle factors.
The goal is one optimal solution, and the occasions do not matter. With this Segmentation variables, your market segments have shared familiarity with your products. Size, population Segmentation variables and climate factors are traits of geographic segmentation, along with region or location.
Nonmutually Exclusive Segments Virtually all segmentation work, historically, has been based upon the assumption of mutually exclusive market segments.
Sugars marketed to consumers appeal to different usage segments — refined sugar is primarily for use on the table, while caster sugar and icing sugar are primarily designed for use in home-baked goods.
Media Segmentation While not common, media segmentation is sometimes a possibility. Smith is generally credited with being the first to introduce the concept of market segmentation into the marketing literature in with the publication of his article, "Product Differentiation and Market Segmentation as Alternative Marketing Strategies.
If you segment the market by psychographics, there are several essential uses of the segmentation: A brand could be sold only in one market, one state, or one region of the United States.
Likewise, a picante sauce might concentrate its distribution and advertising in the Southwest. Then these statements become the inputs to the final segmentation analysis.
Thus, segmentation was essentially a brand-driven process. Each of these product types is designed to meet the needs of specific market segments. It is easy to get lost in this treasure trove of answers and come up with confusing and baffling results.
Some stores stay open later than others. There is a practical limit to the size of segments that companies can effectively target. Some brands are targeted only to women, others only to men. If the goal is to develop new product-development templates for a restaurant chain, then occasion-based segmentation might be a good solution.
If a brand pours all of its budget into one media, it can possibly dominate the segment of the market that listens to that radio station or reads that magazine. As is evident, the client is asking that a tiny sliver of the market be segmented.
The economy was characterised by small regional suppliers who sold goods on a local or regional basis Unification or Mass Marketing s—s: You would include a major section on attitudes toward air travel motivations for air travel, fears related to air travel, positive emotions of flying, attitudes about airline employees, checking luggage, buying tickets, and so forth.
Samuel Pepys, for example, writing indescribes being invited to the home of a retailer to view a wooden jack. White refined, unrefined, brown, unprocessed cane Main Strategic Approaches to Segmentation  Number of segments.
Depending on company philosophy, resources, product type or market characteristics, a business may develop an undifferentiated approach or differentiated approach. Psychographic segmentation is a legitimate way to segment a market, if we can identify the proper segmentation variables or lifestyle statements, words, pictures, etc.
Markets can be also segmented by hobbies, by political affiliation, by religion, by special interest groups, by sports team loyalties, by university attended, and by hundreds of other variables. Tedlowidentifies four stages in the evolution of market segmentation: Education levels often define market segments.
Correlation analysis and regression can be used for this purpose. Geographics One of the simplest and most common segmentation strategies for small businesses is based on geography.
Music streaming services tend to be targeted to the young, while hearing aids are targeted to the elderly. As transportation systems improved, the economy became unified.
In consumer marketing, it is difficult to find examples of undifferentiated approaches. For example, a company might choose to market its red-eye gravy only in the southeastern U.
So you have carefully subdivided your target market into five mutually exclusive psychographic segments, and your boss tells you to develop a marketing plan to attack each segment.Coverage includes the first stage of market segmentation which involves basic variables such as demographic, geographic and financial factors.
Market segmentation is the process of breaking your total target audience into separate groups of customers with similar traits or interests. The characteristics used in segmenting relate to your.
There are 4 different types of market segmentation and all of them vary in their implementation.
A manager can use any one of the four types of segmentation. I think the digital life that we are leading will affect the segmentation variables. The core principles might remain the same.
Example, browsing in itself is a behavioral type of. To understand what segmentation variables in marketing are, it helps to first know what market segmentation is. Market segmentation is the analysis of population demographics so they can be categorized in specific ways.
These specific ways of categorization in market segmentation are why segmentation variables are needed and used.
Market segmentation is a method used by marketers to help identify the most profitable customers for their product or service. You will learn four. Marketing Research Article:This article discusses the different ways that a market segmentation can divide a market along a commonality, similarity, or kinship.
Psychographic segmentation is a legitimate way to segment a market, if we can identify the proper segmentation variables (or lifestyle statements, words, pictures, etc.).Download