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.
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.
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.
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
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.
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
• 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)
📖 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)
MANAGEMENT COURSES CONTINUING PROFESSIONAL DEVELOPMENT (CPD) POINTS
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