Lesson notes, exercises, downloads, and recommended reading are below the video. On mobile, the video will rescale when you play it.

What is Market Segmentation?

Every buyer is unique. But, in most industries, it is impossible to target marketing at individuals. So, instead, we identify broad classes of buyers who share within the class a set of needs and buying preferences. Identifying those classes is market segmentation.

Watching this video is worth 2 Management Courses CPD Points*.
🔎 See below for details

Marketing for Managers
This video is part of course module number 8.3.2
Program 8: Managing Customers & Clients
Course 3: Marketing for Managers
Section 2: Marketing Strategy

Other videos in this section include:
🎬 What is Market Research? https://youtu.be/a9wa1-_2R9E
🎬 What is a Marketing Strategy? https://youtu.be/cpPjuKfswOo
🎬 What is a Customer Persona? https://youtu.be/DJWftQwPtAk
🎬 What is Multi Level Marketing (MLM)? https://youtu.be/u7rRVM_eTo4

Consumer market segmentation (B2C)

We can segment markets in many ways. We’ll in particular at consumer markets. Business markets can often be segmented in analogous ways – but not all of these segments will be relevant.

Geographic segmentation

This can be based on large or small geographic groupings, from global regions like North America, Asia-Pacific, or Africa, to regions within a nation state. Often this is based on cultural traits that influence product usage and buying preferences.

Demographic Segmentation
There are many demographic factors we can use to segment markets, like age, family status, gender, income, occupation…
In many countries, you must avoid any hint of discrimination – particularly along demographic lines that are covered by legislation. Race and gender are the most common.

Geodemographic Segmentation
This is a more sophisticated approach to segmentation that combines a number of geographic and demographic factors to create segments, such as wealthy suburban homeowners, affluent rural elders, young, city-living professionals, low-income single parents, etc

Psychographic Segmentation
This looks at social, personality, and lifestyle characteristics – the sort of factors that are led by personality-based choices. This is also where social classes may be used in market segmentation.

Behavioral Segmentation
This considers buyers’ behaviors – how they respond to or use a product, and their knowledge of and attitudes to it.

Business market segmentation (B2B)
Here we may look at factors like:
• Geographic location (and spread)
• Industry of the buyers
• Size of organization
• Scale of need or purchasing volumes
• Operating model
• Sophistication
• Existing relationships
• Buying process and policies
• Standard commercial terms
• Attitudes to risk, quality, price

Of course, in both B2C and B2B, segmentation is often based on multiple factors and based on substantial qualitative and quantitative research and analysis.

1. Consider the products or services your own employer provides. How does your employer’s marketing segment its customer or client base? (3 MC CPD Points)
2. Now think about a product or service you use frequently. How would its provider see you? What segments do you fit into, and what other segments will they be interested in marketing to? (2 MC CPD Points)

Free Resources
🧰 CPD Tools – https://gum.co/MC-CPD
Paid resources
🧳 Management Courses Onboarding Kit – https://gum.co/MC-ObK ($3)

📖 Very quick overview
Marketing: A Very Short Introduction https://geni.us/ozSJF
📖 Good general overviews
Kotler on Marketing https://geni.us/JNeVHy
Positioning: The Battle for Your Mind https://geni.us/kGj4KCA
The 22 Immutable Laws of Marketing https://geni.us/RVU1
Marketing For Dummies https://geni.us/sZXAw
📖 Small business marketing
The 1-Page Marketing Plan https://geni.us/Xb4wBk
📖 For a textbook, you can’t go wrong with Kotler’s name on it!
Marketing: An Introduction https://geni.us/q4gzVOw
Principles of Marketing https://geni.us/gsFeMT5
Marketing Management https://geni.us/i3FO

⭕️ Links to our book recommendations are affiliated through Amazon

Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)

You can record your Management Courses CPD points on our free, downloadable CPD record log.
📓 Download it at: https://gum.co/MC-CPD
Each video has two levels of MC CPD points. For this video:
– If you simply watched the video, record2 MC CPD points
– If you also carried out all of the recommended exercises, score a total of 7 MC CPD points

#Marketing #ManagementCourses #MarketSegmentation


What is Mentoring? Why get a Mentor and Why be a Mentor? + Top Tips
What is PESTLE Analysis?
The Miller Heiman Strategic Selling Methodology
What is NLP Modelling? And How do we to Do it?
NLP & Hypnosis: What is the Milton Model?
NLP Meta Model: Precision Questioning and Listening
What is NLP? Neuro Linguistic Programming
Howard Gardner: Emotional Intelligence in the Multiple Intelligences Model
Don Draper: In Mad Men, Advertising is Cool
Vance Packard – The Hidden Persuaders
David Ogilvy: The Father of Advertising
Seth Godin: Powerhouse of Marketing Ideas
Jean-Claude Larréché and Marketing Momentum
Theodore Levitt: Globalization of Marketing
Philip Kotler: The Father of Modern Marketing
Estée Lauder: The Mother of Modern Marketing
Advertising Campaign Monitoring & Evaluation
Media Buying: The Three Stages
All of the Advertising Media I Can Think of
Top 20 Strategies for Persuasive Ad Copy: Advertising Copy Strategies
The Creative Process: Developing, Writing, and Producing an Advert
Advertising Agencies: What They Offer and How to Select and Brief an Ad Agency
Planning an Advertising Campaign: Campaign Objective and Budget
What is Advertising? And What are its Benefits?
What is SEO? Search Engine Optimization
What is a USP? A Unique Selling Proposition
What is A/B Testing? …and Split Testing?
What is Remarketing? (or Retargeting)
What is Marketing Automation? And How to set it up.
What is Seth Godin’s Permission Marketing? And How to Build Your Campaign
What is Customer Relationship Management (CRM)? …And How to Use it.
What is the Customer Journey? And How to Visualize it
Seth Godin: What are Tribes?
Guy Kawasaki: What is Enchantment?
What is Public Relations (PR)?
What is the Marketing Channel Mix? Promotion Channel Strategy
Marketing Mix: The Fifth P – What is Positioning?
Marketing Mix: Crafting a Message – What is Promotion?
Marketing Mix: Place and Distribution Channels
Marketing Mix: Price and Pricing Strategy
Marketing Mix: Product – What is the Product Marketing?
What is the Marketing Mix – The 4Ps: Product, Price, Place, Promotion?
What is Multi-Level Marketing (MLM)?
What is a Customer Persona? …or Buyer Persona or Marketing Persona
What is a Marketing Strategy?

Mike Clayton

About Mike Clayton 

Dr Mike Clayton is a (former) Project Manager and now a management educator. Having trained thousands of people at live workshops, seminars, and conferences, he now delivers training mainly via video. He has 14 books with international publishers and runs two successful YouTube channels. He is also the founder of OnlinePMCourses.com

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