1. Market Segementation
Market Segmentation

2. Today’s objectives To understand market segmentation and targeting.
Market Segementation
Today’s objectives
To understand market segmentation and targeting.
To be able to evaluate the success of market segmentation for businesses.

3. Running a successful business involves 3Cs & 4Ps
Market Segementation
Running a successful business involves 3Cs & 4Ps
Product
Price
Place
Promotion
Customer
Company
Competitor
Today we are looking at the 3Cs

4. Customers…
Knowing your customers is a vital tool in running a successful business…

5. Market Segmentation.
Segment C
Segment B
Segment D
Segment A

6. Market Segementation
Market Segmentation
This is where the market is broken down into smaller sub groups that share similar characteristics
Age
Gender
Income
Religion
Ethnic group
Level of education
Geographical
Social class
Examples

7. Market Segementation
Market segmentation
A Higher managerial, administrative or professional
B Intermediate managerial, administrative and professional
C1 Supervisory, clerical, junior administrative or professional
C2 Skilled manual workers
D Semi and unskilled manual workers
E State pensioners, widows, lowest grade workers.

8. Why is it important to understand ALL your customers?
The benefits they want (service or extras)
The amount they are able to or willing to pay
Media (e.g. television, newspapers, and magazines) they see – to target your advertising at them.
The quantities they buy – and what special offers catch their interest.
The time and place that they buy

9. So which market segment customer would buy these?
Market Segementation
So which market segment customer would buy these?
Age
Gender
Income
Religion
Ethnic group
Level of education
Geographical
Social class
To give the students a worksheet with the image on it – for them to complete….
Spanish villa
1_2 market segmentation task.ppt

10. Why is it important to know your customers?
Market Segementation
Why is it important to know your customers?
Mass
market
Range
of customers
Niche
Whether your product appeals to the masses, a small niche or a range of different customers…. Every business needs to MARKET its goods…..

11. So which of these products have a
Market Segementation
So which of these products have a
Niche?
Mass?
Range of customers?
Idea is to get five ‘volunteers’ and give them 2 images each – CHECK THAT THERE IS BLUTACK ON BACK OF EACH!
Get students to stick the images under the correct heading on the following page…
Spanish villa

12. Niche Mass Range of customers Market Segementation
Idea is to get five ‘volunteers’ and give them 2 images each – CHECK THAT THERE IS BLUTACK ON BACK OF EACH!
Get students to stick the images under the correct heading on the following page…

13. Niche Mass Range of customers A small group of people
Market Segementation
Niche
A small group of people
Mass
To a full range of people
Range of customers
A few very different set of groups will be attracted to these!
Idea is to get five ‘volunteers’ and give them 2 images each – CHECK THAT THERE IS BLUTACK ON BACK OF EACH!
Get students to stick the images under the correct heading on the following page…
Spanish villa

14. So Market Segmentation is a lot more than advertising!
Market Segementation
So Market Segmentation is a lot more than advertising!
The owner
The Franchisor
BoD
Marketing manager
Financial manager MD
So who decides on the marketing budget and what direction the marketing plan goes?

15. Marketing Objectives ……
Market Segementation
Marketing Objectives ……

16. Can anyone remember what S.M.A.R.T. stands for?
Market Segementation
SMART Targets
Can anyone remember what S.M.A.R.T. stands for?

17. Market Segementation
SMART Targets

18. Marketing objectives involve
Market Segementation
Marketing objectives involve
Some examples
But none of these
are SMART!

19. Examples of SMART targets
Market Segementation
Examples of SMART targets

20. Demographic V Geographic Segmentation?B C D A

21. Demographic & geographic segmentation
Demographic segmentation
Dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality
Geographic segmentation
Geographic segmentation tries to divide markets into different geographical units

22. Geographic Segmentation
Regions: e.g. in the UK these might be England, Scotland, Wales Northern Ireland or (at a more detailed level) counties or major metropolitan areas
Countries: perhaps categorised by size, development or membership of geographic region
City / town size: e.g. population within ranges or above a certain level
Population density: e.g. urban, suburban, rural, semi-rural

23. Limitations of Segmentation
Lack of information and data: some markets are poorly researched with little information about what customers want
Difficulty in measuring and predicting consumer behaviour: humans don’t all behave in the same way all of the time.
Hard to reach customer segments once identified: it is one thing spotting a segment; it is another reaching target customers with an effective marketing message

24. Market Segementation
Now you try it!
Using the case studies…. Or put a few up here on the screen
Identify the market segmentation by categories
Identify the demographic segmentation & which one(s) would be better also looking at geographic segmentation?

25. Case Study No/Company name:
This company targets a
Niche
Mass
Range of customers
Circle the relevant group
The demographic segmentation groups include:
Benefits of targeting this group are:
Weaknesses of targeting this group are:

29. Plenary Why do businesses have marketing objectives?
Market Segementation
Plenary
Why do businesses have marketing objectives?
What does SMART mean?
Can anyone list the 8 demographic market segmentation categories?
Age
Gender
Income
Religion
Ethnic group
Level of education
Geographical
Social class