1. MARKET SEGMENTATION
The division of potential customers into groups with similar characteristics

2. Nivea

3. Questions
Why does Nivea have to segment the market?
How have Nivea segmented their product range? List the 3 segments and explain what each segment uses the product for.
How does market segmentation allow Nivea to maintain high sales/ market share?

4. Segmentation SOCIO-ECONOMIC CLASS –
Some business aim their products at specific social classes, and their income.

5. Segmentation RELIGION / ETHNICITY –
Products may be targeted towards specific religious / ethic groups.

6. Segmentation
AGE –
The demand for some products is clearly linked to age. For example, holiday companies segments the market by age.

7. Segmentation
GENDER –
Some business aim their products specifically at one gender, producing products just for women or men.

8. Segmentation LIFESTYLE –
This method of segmentation attempts to classify consumers according to their individual patterns of expenditure.

9. Segmentation GEODEMOGRAPHIC –
Segments consumers using geographic and economic factors. For example, where the customer lives and the type of house they live in.
Window cleaners / gardeners /

10. How would you market: Consider: Age Gender Religion
Newcastle Brown Ale
Consider:
Age
Gender
Religion
Socio-economic class
Life-style
Geographic location
Trainers
Burberry hat
Incense
Bentley

12. Mass Market
This is where there is a very large number of sales of a product RC

13. Niche market
This is a small usually specialised, market segment of a much larger market. RC

14. Niche or mass market? RC