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Segmentation and marketing Objectives

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Market Segmentation • Every market can be divided (segmented) into groups

of potential customers who have similar characteristics. The benefit to the marketer in doing this is that each segment has less variability than the market as a whole

• The most common bases of segmentation are:– Demographic– Socio-economic– Buying patterns– Personality, attitudes, values– Life style

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Bases of Market Segmentation (1)

• Demographic, for example:– age, gender, geographical distribution– family size, family composition, life cycles stage– ethnic groups, geographical mobility, physical

characteristics such as skin and hair type• Socio-economic, for example:

– earnings, wealth, credit potential– type of housing– newspapers and magazines read

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Bases of Market Segmentation (2)

• Buying Patterns– buyers and non-buyers– brand loyalty

• Personality, Attitudes and Values– ‘compliant’ and ‘aggressive’ personality types– social, reparative, indulgent and oceanic drinkers

• Life Style– activities, interests, opinions and values– spending habits

CULSCzech University of Life ScienceMarketing Objectives

• Your marketing objectives should be based on understanding your strengths and weaknesses, and the business environment you operate in. They should also be linked to your overall business strategy.

• For example, suppose your business objectives include increasing sales by 10 per cent over the next year. Your marketing objectives might include targeting a promising new market segment to help achieve this growth.

• For more information on how to identify the best opportunities, see the page in this guide on external and internal analysis for your marketing plan.

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Objectives should always be SMARTSpecific

for example, you might set an objective of getting ten new customers.

Measurable whatever your objective is, you need to be able to check whether you

have reached it or not when you review your plan.

Achievable you must have the resources you need to achieve the objective. The

key resources are usually people and money.

Realistic while you should set targets that stretch you, there is no point in being

too ambitious.

Time-boundyou should set a deadline for achieving the objective. For example,

you might aim to get ten new customers within the next 12 months.

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