SEGMENTATION
By
Elisante Ole Gabriel (Tanzania)
Chartered Marketer
egabriel@edenconsult.net, www.olegabriel.com
+255-784-455-499
What is Segmentation?
This is a process of grouping customers with
homogeneous needs for the sake of offering them a
better service.
Target marketing involves the following:
Identify distinct groups (Segmentation), select one
or more (Targeting), Communicate your CA
(Positioning) = STP
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Levels of Segmentation
Mass Marketing: The marketers engages in Mass
production, Mass distribution and mass promotion
= Eco of scale & scope
Segment Marketing: A process of grouping
homogeneous needs. A marketer does not create a
segment but but identifies and manages.
Niche,Local & Individual customer marketing.
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Patterns of Segmentation
Homogeneous preference: All consumers roughly
has the same preference, eg change to two years of
MBA.
Diffused preferences: Preferences scattered all
over the place
Clustered preferences: Small subgroups
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Bases for Segmentation
Geographical factors
Demographic (Sex, Age, family size, income,
Education, religion, etc)
Psychographic factors: Lifestyle, personality or
values. People within the same demographic group
can have different psychographic profiles.
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Finally
The concept of Product life cycle
(PLC)
What is this concept about
Stages
Relationship with BCG
Critiques of PLC, connected to BCG
The concept of profitability in PLC
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