MARKET SEGMENTATION

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

Nivea

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?

Segmentation SOCIO-ECONOMIC CLASS – Some business aim their products at specific social classes, and their income.

Segmentation RELIGION / ETHNICITY – Products may be targeted towards specific religious / ethic groups.

Segmentation AGE – The demand for some products is clearly linked to age. For example, holiday companies segments the market by age.

Segmentation GENDER – Some business aim their products specifically at one gender, producing products just for women or men.

Segmentation LIFESTYLE – This method of segmentation attempts to classify consumers according to their individual patterns of expenditure.

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

How would you market: • Consider: • Age • Gender • Religion • Socio-economic class • Life-style • Geographic location Trainers Burberry hat Newcastle Brown Ale Bentley Incense

http://www.youtube.com/watch?v=llJNwdV-G88

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

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

Niche or mass market?

MARKET SEGMENTATION