Every buyer is unique. But, in most industries, it is impossible to target marketing at individuals. So, instead, we identify broad classes of buyers who share within the class a set of needs and buying preferences. Identifying those classes is market segmentation.

Watching this video is worth 2 Management Courses CPD Points*.
See below for details

Marketing for Managers
This video is part of course module number 8.3.2
Program 8: Managing Customers & Clients
Course 3: Marketing for Managers
Section 2: Marketing Strategy

Other videos in this section include:
What is Market Research? https://youtu.be/a9wa1-_2R9E
What is a Marketing Strategy? https://youtu.be/cpPjuKfswOo
What is a Customer Persona? https://youtu.be/DJWftQwPtAk
What is Multi Level Marketing (MLM)? https://youtu.be/u7rRVM_eTo4

LESSON NOTES
Consumer market segmentation (B2C)

We can segment markets in many ways. We’ll in particular at consumer markets. Business markets can often be segmented in analogous ways – but not all of these segments will be relevant.


Geographic segmentation

This can be based on large or small geographic groupings, from global regions like North America, Asia-Pacific, or Africa, to regions within a nation state. Often this is based on cultural traits that influence product usage and buying preferences.


Demographic Segmentation
There are many demographic factors we can use to segment markets, like age, family status, gender, income, occupation…
In many countries, you must avoid any hint of discrimination – particularly along demographic lines that are covered by legislation. Race and gender are the most common.



Geodemographic Segmentation
This is a more sophisticated approach to segmentation that combines a number of geographic and demographic factors to create segments, such as wealthy suburban homeowners, affluent rural elders, young, city-living professionals, low-income single parents, etc


Psychographic Segmentation
This looks at social, personality, and lifestyle characteristics – the sort of factors that are led by personality-based choices. This is also where social classes may be used in market segmentation.


Behavioral Segmentation
This considers buyers’ behaviors – how they respond to or use a product, and their knowledge of and attitudes to it.

Business market segmentation (B2B)
Here we may look at factors like:
• Geographic location (and spread)
• Industry of the buyers
• Size of organization
• Scale of need or purchasing volumes
• Operating model
• Sophistication
• Existing relationships
• Buying process and policies
• Standard commercial terms
• Attitudes to risk, quality, price

Of course, in both B2C and B2B, segmentation is often based on multiple factors and based on substantial qualitative and quantitative research and analysis.




RECOMMENDED EXERCISE
1. Consider the products or services your own employer provides. How does your employer's marketing segment its customer or client base? (3 MC CPD Points)
2. Now think about a product or service you use frequently. How would its provider see you? What segments do you fit into, and what other segments will they be interested in marketing to? (2 MC CPD Points)


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RECOMMENDED READING
Very quick overview
Marketing: A Very Short Introduction https://geni.us/ozSJF
Good general overviews
Kotler on Marketing https://geni.us/JNeVHy
Positioning: The Battle for Your Mind https://geni.us/kGj4KCA
The 22 Immutable Laws of Marketing https://geni.us/RVU1
Marketing For Dummies https://geni.us/sZXAw
Small business marketing
The 1-Page Marketing Plan https://geni.us/Xb4wBk
For a textbook, you can’t go wrong with Kotler’s name on it!
Marketing: An Introduction https://geni.us/q4gzVOw
Principles of Marketing https://geni.us/gsFeMT5
Marketing Management https://geni.us/i3FO

⭕️ Links to our book recommendations are affiliated through Amazon

Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)

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