MARKET SEGMENTATION

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MARKET SEGMENTATION
The division of potential customers into groups
with similar characteristics
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Nivea
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• 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?

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Segmentation
SOCIO-ECONOMIC CLASS Some business aim their
products at specific social classes, and their
income.
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Segmentation
RELIGION / ETHNICITY Products may be targeted
towards specific religious / ethic groups.
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Segmentation
AGE The demand for some products is clearly
linked to age. For example, holiday companies
segments the market by age.
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Segmentation
GENDER Some business aim their products
specifically at one gender, producing products
just for women or men.
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Segmentation
LIFESTYLE This method of segmentation attempts
to classify consumers according to their
individual patterns of expenditure.
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Segmentation
GEODEMOGRAPHIC Segments consumers using
geographic and economic factors. For example,
where the customer lives and the type of house
they live in.
www.upmystreet.com
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How would you market

• Consider
• Age
• Gender
• Religion
• Socio-economic class
• Life-style
• Geographic location

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• http//www.youtube.com/watch?vllJNwdV-G88

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Mass Market

• This is where there is a very large number of
  sales of a product

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Niche market

• This is a small usually specialised, market
  segment of a much larger market.

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Niche or mass market?