Market Segmentation

1
Market Segmentation

• Every consumer is distinct. Your reason for
  buying a product will be different from anyone
  elses.
• Given this, the marketing mix is an attempt to
  achieve an optimum fit between the efforts of
  producers and the needs of consumers.
• MARKET COVERAGE STRATEGY
• The use of segmentation depends on the market
  coverage strategy. Firms may choose to
• Produce a standardized product aimed at the mass
  market, so maximizing sales and market share.
• Create a range of products for different segments
  in the market.
• Specialized product concentration at a single
  segment.
• Segmentation is becoming increasingly important
  due to fragmentation of the traditional mass
  market. (NB- It also tends to become more
  fragmented when incomes rise rapidly e.g. 1985-8.
  WHY?)

2

• Types of segmentation
• Gender
• Age
• Region
• Socio-economic groupings
• Lifestyle
• Education
• Firms have always recognized some limited
  segmentation, producing luxury, standard and
  economy models.
• Due to the fact segments are always changing, a
  firms marketing mix needs to be highly flexible
  and capable of fine tuning according to the
  segments needs.