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Chapter
Market segmentation is the process of dividing the total market into relatively distinct homogeneous sub-groups of consumers with similar needs or characteristics that lead them to respond in similar ways to a particular marketing programme. A market segment is a portion of a larger market in which the individuals, groups, or organisations share one or more characteristics that cause them to have relatively similar product needs.
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Geographic variables Region Urban, Rural City size Climate Terrain Personality attributes Motives Lifestyle Market density Psychographic variables Nation State
Demographic variables Gender Age Race Religion Social class Family size Occupation Family life cycle Income Education
Behaviouristic variables Usage volume, Occasion End use Benefits sought Brand loyalty Price sensitivity
Segmentation Variables
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Geographic Segmentation
Geographic segmentation focuses on dividing markets into different geographic units, such as regions, nations, states, urban, rural, etc.
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Demographic Segmentation
Demographic characteristics are commonly used to segment the market. Factors such as age, sex, education, income, marital status, household life cycle, family size, social class, etc., are used singly, or in a combination, to segment a market.
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Psychographics Segmentation
When segmentation is based on personality or lifestyle characteristics, it is called psychographic segmentation.
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Behaviouristic Segmentation
Dividing the market on the basis of such variables as use occasion, benefits sought, user status, usage rate, loyalty status, buyer readiness stage and attitude is termed as behaviouristic segmentation.
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Product Positioning
Product positioning is a decision reached by a marketer to try to achieve a defined brand image relative to competition within a market segment. Product positioning decisions are strategic decisions and have an impact on long-term success of the brand.
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Common bases used for positioning include: Features Benefits Usage Parentage Manufacturing process
Ingredients
Endorsements Comparison Pro-environment
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Product class
Price/quality Country or geographic area
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Positioning Errors
Underpositioning Overpositioning Confused positioning Doubtful positioning
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Repositioning
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