SEGMENTATION

1
SEGMENTATION

• By
• Elisante Ole Gabriel (Tanzania)
• Chartered Marketer
• egabriel_at_edenconsult.net, www.olegabriel.com
• 255-784-455-499

2
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

3
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.

4
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

5
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.

6
The concept of Product life cycle (PLC)
Finally

• What is this concept about
• Stages
• Relationship with BCG
• Critiques of PLC, connected to BCG
• The concept of profitability in PLC