Bases for Segmentation (1)

Geography Demography Psychological measures Psychographics Sociocultural measures

 Use-Related Segmentation

Bases for Segmentation (2)

Usage-Situation Segmentation

Benefit Segmentation
Hybrid Segmentation Approaches

Geographic Segmentation
Divide total potential market into smaller subgroups on the basis on geographic variables (e.g., region, state, or city).

Demographic Segmentation
Age Sex Marital Status Income, Education, and Occupation

Age
Age effects
occurrences due to chronological age

Cohort effects
occurrences due to growing up during a specific time period

Gender
Traditional roles of men and women in purchases Changing gender roles
Dual-income households

Working women less accessible through traditional media

Marital Status
Households as a consuming unit
Singles divorced single parents dual-income married

Income, Education, and Occupation

Income is often combined with other variables for segmentation The three variables tend to be correlated

Sociocultural Segmentation
Family Life Cycle Social Class Culture, Subculture, and Cross-Culture

Family Life Cycle

Phases a family goes through in their formation, growth, and final dissolution
Bachelorhood Honeymooners Parenthood Post-parenthood Dissolution

Culture, Subculture, and CrossCulture

Segmenting on the basis of cultural heritage
assumes members of the same culture share the same values, beliefs, and customs

Subcultures are united by certain experiences, values, or beliefs.

Use-Related Segmentation

Rate of Usage Heavy vs. Light Awareness Status Aware vs. Unaware
Brand Loyalty

Brand Loyal vs. Brand Switchers

Usage-Situation Segmentation
Segmenting on the basis of special occasions or situations

Benefit Segmentation
Segmenting on the basis of the most important benefit sought by consumers when purchasing the product or service
Toothpaste can be bought for: Good Taste (e.g., Colgate) Fresh Breath (e.g, Close Up) White Teeth (e.g, Macleans) Cavity Protection (e.g.,Aim)