Market Segmentation

Topics: Marketing, Market segmentation, Psychographic Pages: 4 (580 words) Published: August 24, 2011

Identify and profile distinct group of buyers who might require separate products and/or marketing mixes. Market segmentation can be segmented in different ways.

MASS MARKETING- is when the seller engages in the mass production, mass distribution \and mass promotion of one product for all buyers it is also create s the largest potential market which leads to the lowest costs, which in turn can translate into either lower prices or higher margins.


Four Levels of Level of Segmentation:

1. SEGMENT MARKETING- It consists of a large identifiable group within a market. 2. NICHE MARKEITNG- It is more narrowly defined group, typically a small market whose needs are not being well served by identifying niches, marketers dividing segment into sub segments or by defining a group with a distinctive set of traits who may seek combination of benefits. 3. LOCAL MARKEITNG- Marketing programs being tailored to the needs and wants of local customer groups. 4. INDIVIDUAL MARKETING- The ultimate segmentation leads to “segments of one “, customized marketing” or “one to one”


* SELF MARKETING- is a form of individual marketing in which the individual consumer takes on more responsibility for determining which products and brands to buy.


Three (3) different patterns that can be emerge:

1. Homogeneous Preferences- shows a market where all the consumers have roughly the same preference. 2. Diffused Preferences- showing that the consumers vary greatly in their preferences. 3. Clustered Preferences- market might reveal distinct preference clusters called natural market segment.


Three (3) step approach used by marketing research firms.

1. Survey stage- the researcher conducts exploration interviews and focus groups to gain insight into consumer motivations, attitudes and behavior. 2....
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