Market segmentation is about understanding the needs of customers & also how they decide between one offer to another. This insight is normally used to form groups of customers who share the same value criteria. Companies are then able to identify which group of customers it’s most likely to suit best & which product meets the needs of its chosen segments. The main objective of segmentation is based on how to win & retain the customers you want to serve.
Characteristics are divided into different categories so they are segmented into a specific market: • Gender
• Life span
• Interests & hobbies
• Local/national areas
SILK TOPSHOP PENCIL DRESS
Demographic: Topshop’s target customers who are women aged between
18-25 years old with an income range of £10,000 - £50,000 a year. Their target audience is young, fashion-conscious people on a budget.
Psychographic: Customers tend to have goal orientated lifestyles & commitment to to career & family, their image is important to them & they are motivated by self expression. They are young, enthusiastic & impulsive consumers. Behavioural: For a dress in Topshop, people are willing to pay a little more because they like the brand. Most customers are avid shoppers & will have bought a lot more than one item within the shop before.
Geographic: A little, black dress would most normally be sold throughout the whole year. This is because it’s such a plain, popular type of dress suitable for lots of different occasions.
LYNX CLICK BODY SPRAY
Demographic: Lynx target customers who are male aged between
11-25 years old of any ethnicity. Consumers are most likely heterosexual as well.
Psychographic: Customers tend to be motivated to get a girl or are very peer influenced & are constantly in competition with their friends. Behavioural: Most males are willing to give whatever their friends are using a try. Lots of men use Lynx body spray which automatically interests male