BA 390 Midterm #2 Spring 2012

The process that companies use to divide large, heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs

Divides the market into different geographical units such as nations, regions, states, counties, or cities

Divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality

The process of offering different products or using different marketing approaches for different age and life-cycle groups

Divides the market based on sex (male or female)

Divides the market into affluent or low-income consumers

Divides buyers into different groups based on social class, lifestyle, or personality traits

Divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product

Used to identify smaller, better-defined target groups

An example of multivariable segmentation that divides groups into consumer lifestyle patterns

Classifies every American household into 66 unique segments organized into 14 different social groups

Divides consumers into groups with similar needs and buying behaviors even though they are located in different countries

Effective Segmentation Requires that to be useful, market segments must be

Consists of a set of buyers who share common needs or characteristics that the company decides to serve

Targets the whole market with one offer