Date post: | 04-Jan-2016 |
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MARKET SEGMENTATION
The division of potential customers into groups with similar characteristics
Nivea
Questions
1.Why does Nivea have to segment the market?
2.How have Nivea segmented their product range? List the 3 segments and explain what each segment uses the product for.
3.How does market segmentation allow Nivea to maintain high sales/ market share?
Segmentation
SOCIO-ECONOMIC CLASS –Some business aim their products at specific social classes, and their income.
SegmentationRELIGION / ETHNICITY –Products may be targeted towards specific religious / ethic groups.
Segmentation
AGE – The demand for some products is clearly linked to age. For example, holiday companies segments the market by age.
SegmentationGENDER – Some business aim their products specifically at one gender, producing products just for women or men.
SegmentationLIFESTYLE – This method of segmentation attempts to classify consumers according to their individual patterns of expenditure.
SegmentationGEODEMOGRAPHIC – Segments consumers using geographic and economic factors. For example, where the customer lives and the type of house they live in.
www.upmystreet.com
How would you market:
Trainers
Burberry hatIncense
Bentley
Newcastle Brown Ale
Consider:•Age•Gender•Religion•Socio-economic class•Life-style•Geographic location
• http://www.youtube.com/watch?v=llJNwdV-G88
RC
Mass Market
• This is where there is a very large number of sales of a product
RC
Niche market
• This is a small usually specialised, market segment of a much larger market.
RC
Niche or mass market?