Read this Tweet, what do you understand by it? What does Leigh Cowan feel about segmentation and why?

D/C I can demonstrate an understanding of segmentation with examples B/A I can say why such segmentation can be useful to business A/A* I can select and justify a method of segmentation appropriate to given circumstances Learning intention: To be able to explain how and why markets are segmented according to age, socioeconomic groupings, location or gender

We don’t all want or need the same thing… Successful companies know this and produce products and advertisements to appeal to different types of people. Discuss companies you know that make different products for different people

Diet Coke or Coke Zero Which would you choose?

Coca cola made Coke Zero because Market research told them that there were many males who would like a Diet drink but didn’t buy it because “Diet Coke seemed too girlie for them”

Markets are segmented So that producers can make products for, and advertise to, as wide a range of people as possible

A segment is a part of a whole

So Diet Coke and Coke Zero … are produced for two different market segments Everyone in this market likes soft drinks, they also like Coke, they also like diet drinks but one of these market segments wants to drink a Diet drink that is aimed at males

Other ways of segmenting markets age, socioeconomic groupings, location gender By income By household size By religion or nationality By the media, read or watched By lifestyle or interests Behaviour – buy a paper every day, same washing brand every time!

How much you can work out about the market segments targeted What age? What gender? What interests? What would be advertised?

Which market segments could this product appeal to? Think of the list of groups we talked about earlier

Name on a post-it; plus 1 thing you learnt today and a target to work on… and stick it where feel on the continuum D/C I can demonstrate an understanding of segmentation with examples B/A I can say why such segmentation can be useful to business A/A* I can select and justify a method of segmentation appropriate to given circumstances Learning intention: To be able to explain how and why markets are segmented according to age, socioeconomic groupings, location or gender