1. Market Segmentation
The Process of dividing the market into meaningful and similar groups based needs, characteristics or behaviour

2. Customer vs Consumer customer consumer
Person who buys the product
Person who consumes/uses the product
Sometimes they are the same person, sometimes not.

3. The 4Ps/Marketing Mix and Market Segmentation
Product
What is the product and who’s needs/wants does it meet? How does it meet those needs/wants? 
Price
how much are different market segments willing to pay? Is it different for different segments??
 Place (distribution)
Where are the market segment(s) you want to target? Where do they shop? How do they shop? Where are they geographically? 
Promotions
How will you reach your target market segment(s)? How will they know about your product? What types of promotion will different segments identify with/react to?

4. Market
all potential customers who share needs and wants, and who have the ability and willingness to buy the product

5. Segmenting Your Market
Sorting potential buyers into groups with common needs
Groups of buyers will respond similarly to your marketing actions
Market segment – the groups resulting from sorting/segmenting
Target market – the market segment(s) you want to focus your marketing actions on

6. How do we group them? Segment Market Based On:
Demographics
Psychographics
Geographics
Put another way, we use [these above] to describe different segments of the market

7. Example: Apple iPhone 5s/c
Market segments:
Adults who are working full-time
Paid for by work OR mid- to upper-income
Communicate with colleagues, friends, family
Tool for improving work/home efficiency
Students
High school, college, university
Communicate with friends and family
Need portable, multi-functional device

8. Target Marketing
Evaluate each market segment’s attractiveness (profitability)
Focus marketing decisions on one (or more) segment of the market

9. Demographics
Gender
Ethnic background
Statistical data that describes a population in terms of personal characteristics:
Income
Age

10. Demographics
Education
Marital Status
Home Ownership

11. Generational Cohorts
Group of people bound together by the sharing of the experience of common historical events

12. Cohort: Baby Boomers Born 1946-64 (post WWII)
Associated with wealth/privilege
Active, physically fit
Size: 9.6 m in Canada; 76 m in US

13. Cohort: Gen X
Born
Greater diversity: race, class, religion, ethnicity, and sexual orientation
Agents of change, strong belief in individual freedom, tolerance, and human rights for all
Size: 7 m in Canada; 61 m in US

14. Cohort: Millenials Born 1981-2000
Digital natives; trophy kids; boomerang generation
“Me” Generation; narcissistic; sense of entitlement; reject social conventions
Size: 9 m in Canada; 85 m in US

15. Other Demographic Descriptors
Yuppies – Young Upwardly-mobile Professionals
20s or early 30s; middle to upper class
DINKS – Dual Income, No Kids
DEWKS – Dually Employed with Kids
HENRYs – High Earners, Not Rich Yet

16. Psychographics Segmentation of a market based on peoples’:
Lifestyles; attitudes; values; behaviours
Don’t confuse with DEMOGRAPHICS

17. Geographics segmentation of a market based on where people live
City, region, province/state, country, international trading areas, etc.
Rural, urban, suburban

18. Customer Profile
includes information about the target market with regard to:
Demographics
Psychographics
Geographics
Does involve stereotyping and making judgements

19. Examples of Customer Profiles

21. #1 - Customer Profile Activity
Make a customer profile for 3 of these people

22. Sample Customer Profile
Demographics:
Gender: Male
Age: years old
Income: $60,000-$80,000 per year
Marital Status: single
Level of Education: vocational/skilled trade
Home Ownership: owns condominium
Transportation: owns truck
Psychographics: very eco-conscious, traditional values, strong work ethic
Geographics: North American, urban,

23. #2 - Activity
Think of an existing product and then think of the market for this product.
Briefly describe the marketing mix for the product.
Look at the entire market and try to segment the product’s market into 2 different segments.
Analyze the attractiveness of each segment
Example: look at each segment and think about:
Which segment would buy more of the product
Which segment would pay more for the product
Which segment would have more money to spend on the product
Compare the two segments based on your analysis
Select the segment that you wish to target and explain/summarize why
Write up as a report with headings, double spaced.