Market Segmentation & 4 P’s

segmentation
dividing the marketplace into subgroups or segments
targeting
determining which of those segments it should pursue or target
positioning
deciding how it should position its products and services to best meet the needs of
those chosen targets
4 Segmentation Methods
Geographic, Demographic, Psychographic, and Behavioral
Geographic segmentation
organizes consumers into groups on the basis of where they live
Demographic segmentation
groups consumers according to characteristics such as age, gender, income, and education
Psychographic segmentation
groups consumers by how people describe themselves and the reasons for their choices
Behavioral segmentation
groups consumers based on how they use the product or service
Product
An item that satisfies a need or want
4 P’s
Product, Place, Price and Promotion
Place
Where and how the product is distributed
Price
The amount a customer pays for the product
Promotion
All methods of communication from market to customer
Goods
Things you can see and touch that are sold
Services
Actions that are provided for you by other people
Ideas
You can sell these, but they don’t exist fully yet – items such as patents fall under this.
Target
A group of customers that the business is aiming for.
Slogan
A short memorable phrase to remind the consumer of a product
Logo
A graphic mark or emblem used to aid and promote instant public recognition