1. AS Business Studies Marketing

2. Look at the other students in the class what characteristics do you all share?

3. What kind of products are you interested in?

4. Market Segmentation Market segmentation involves the division of larger markets into smaller groups of consumers who share similar characteristics

5. What other ways can a market be segmented?

6. Demographic Segmentation This is about people in general and will include details about: Age Gender Family size Income levels Ethnic background Occupation Education Religion Socio-economic background

7. Socio-economic classficiations Upper middle class Middle class Lower middle class Skilled manual workers Working class (mostly unskilled manual workers) Casual (part-time workers) An individual´s social class could have a great impact on their spending patterns

8. Acronyms for classifications DINKY (UK) – Double income, no kids YUPPIE (USA)….young urban professional) NILK (UK) – no income, lots of kids WOOF (UK) – well-off older folk

9. Psychographic factors – also determine spending habits Lifestyle Attitudes Personality characteristics Etc….

10. Geographic Segmentation This will include details about where people live including : Region Post code groups Whether they live in a rural or urban area?

11. Benefit Segmentation Based on people who want the benefits the product offers Why do users use a particular product or brand as opposed to any other? What are the common characteristics of people who use particular brands or products?

12. Behaviouristic Segmentation This looks at the typical behaviours of groups of customers and includes details about: frequency of purchase loyalty to particular products or brands

13. List 5 products that could be aimed at each of these different customers.

14. Market Segmentation in the tobacco industry

15. Consumers of Cigarettes Slobs (27%) downmarket, likely to live with parents, no further education, unconcerned with diet, health, appearance or company promotions but wanted a 'strong' cigarette Aspiring Sophisticates (20%) Mainly 18-24 year old men. Few go on to higher education but would view their job as a career, image conscious, enjoyed the pursuit of pleasure and viewed Marlboro as a 'trendy' cigarette that reflected their image.

16. Consumers of Cigarettes Conservatives (28%) Higher income; educated, image and fashion conscious. This group were looking for a mild tasting cigarette. Worriers (25%) Worriers were predominantly women who were health conscious and concerned about their financial state, the environment and the future but not concerned unduly with their image

17. Reasons for Market Segmentation Sell more products Gain greater knowledge about its customers Target particular groups Help to prevent ineffective promotion Help to market a wider range of differentiated products

18. Practice – Page 260 Read and discusss number 7