CH+8+Market+Segmentation

by Ruveen 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)
 * Basic criteria for effective segmentation**

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
 * 4 major bases for segmenting consumer markets**

Chris Gray Hardeep kangg Robin Modgil