by Ruveen
Basic criteria for effective segmentation
1. marketer must present measurable purchasing power and size (ie: women have purchasing power over income etc)
2. marketers must find way to promote effectively and to serve the market segment (ie promote to these women, feature moms in ads)
3. identify segments that are sufficiently large enough to give profit potential (ie women influence electronics purchases,..market to their needs to incr. profit potential for this industry)
4. Firm must aim for segments that match its marketing capabilities (ie stick to the target market..women & make a play area in the electronics section)

4 major bases for segmenting consumer markets
1. geographic-division of an overall market into homogenous groups based on their locations (pop;l migration patterns, distrib. patterns)
2. Demographic (gender, age, income, occupation, education, household size, stage in family cycle)
socio-economic segmentation
age
ethnic groups
Engels Law-how the impact of household income changes on consumer spending behaviour. Basically as income increases:
-small % change -Food
-% on housing, household ops, clothing is constant
-% on other stuff (recreation/education) increases
3. Psychographic- division of a pop'l into groups that have similar sychological characteristics, values and lifestyles. (needs, motives,perceptions, attitudes)
4. Product-related- division of a pop'l into homogenous groups based on their relationships to the product

Chris Gray
Hardeep kangg
Robin Modgil