I am going to give a presentation on Market Segmentation.

Because buyers in any

market differ in their wants, resources, locations, buying attitudes, and buying practices,
many companies have to divide large and diverse markets into smaller segments in
order to meet customer needs efficiently and effectively.
And in this part, we will discuss four important segmentation topics: the 1st is
segmenting consumer markets, the 2nd is segmenting business markets, next is
segmemting international markets, and lastly, requirements for effective segmentation.
Now, I will move on Segmenting consumer markets
Geographic Segmentation means dividing a market into different geographical units,
such as nations, states, regions, countries, cities, or even neighborhoods. They may
decide to adjust store size or localize product assortments and services. For adjusting
store size, it means the company will operate in various areas. But depending on
geographical characteristics, they will do business according to different models.
For example, Target, initially, they opened a superstores in the suburbs. These
superstores will sell many different products, meeting the shopping needs of people.
However, this kind of superstores are not suitable for crowded urban areas, this
company decide to open a smaller-format stores called City Target. These stores about
half the size of Super Target, and other smaller-format stores, just appropriate one-fifth
the size of the Super Target called Target Express. These smaller stores located in
crowded neighborhoods and cities carry a more limited assortment of goods, they don’t
have various products like supertores, but they are enough to meet the needs of urban
residents.
Beside adjusting the store size, many companies decide to localize product assortments
and services. I get Circle K as an example, this convenient store located in Vung Tau
city. As we know, Vung Tau is a famous tourist destination and has a beautiful beach.
Therefore, Circle K decide to sells swimming floats to cater customers’ needs, who come
here to swim. Actually, we can see most circle K stores only sell products such as food,
beverages, and necessary items. Depending on the characteristics of each area, these
stores will sell additional products suitable for that area. This is call localizing product
assortments and services.
The next part is demographic segmentation, it will segment customers base on variables
such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity,
and generation. Because preferences and shopping behaviors among people of different
age, gender, and income groups will be different, marketers need to divide customers
into small groups to easily choose appropriate marketing strategies. Moreover, it is
the most popular factor and easier to measure than most other types of variables.
The third one is Age and life-cycle segmentation. At different ages, customers will have
different needs and shopping preferences. Therefore, companies must use different
marketing approaches for different age groups. For example, Oscar Mayer is an American
meat and cold cut producer known for its hot dogs, bacon, ham, and Lunchables products.
Oscar Mayer has produced 3 different product lines for 3 different groups of people.
The 1st is Lunchables for children. In this food box there will be cookies and fast foods
suitable for children and most children love these food. The 2nd version that Oscar Mayer
produced is Lunchables Uploaded. Inside this food box will be hot dogs or pizza. These
dishes will contain more nutrients, provide more energy and are suitable for teenagers.
And the last version is for adult. Adults will prefer to eat foods rich in nutrients and
protein. They will not favor fast food like teenagers. Therefore, this company has
produced a third version called P3 (Portable Protein Pack), which will include nuts, meat.
Next is Gender segmentation. It is used in marketing clothing, cosmetics, toiletries,
toys, and magazines. We can look at L’Oréal, the company is famous for its beauty
products. Usually, women like beauty products more than men. Previously, this company
only produced makeup and skin care products for women. Therefore, in promotional
videos, they always use images of women. For customers, when they see such
promotional videos, they will think that the product is for women and men will not buy it.
However, today, men are gradually interested in these products, so this company has
launched a product line for men. It can be seen that depending on gender, product lines
will be different.
Next is Income segmentation, it is used in marketing products and services such as
automobiles, clothing, cometics, financial services, and travel.
For many companies that produce luxury products, they want to target affluent
consumers, those who have high income and are willing to spend a lot of money on
buying something. Like Gucci, Dior, Prada, because they sell luxury products, they have
their special marketing strategies like: Using artists and celebrities, Hosting exclusive
events, Creating uniqueness and independence in design, Providing special customer
care. In contrast, companies target low-and middle-income groups, they always look for
low-middle-class neighborhoods and they sell their product with low prices.
For Psychographic Segmentation, it based on lifestyle or personality characteristics.
People in the same demographic group can have very different psychographic
characteristics. Therefore the marketers should base on this segmentation. For
personality, companies will deliver their message through products. Like Nike, when
they produce this shoes, they focuse on the values and strong character of Michael
Jordan_who is a famous basketball player: determination, confidence, and fighting spirit.
Thanks to that, they will attract many customers with such personalities. For lifestyle,
Royal Dutch Gazelle base on the lifestyle of different group of people, then they produce
many types of bike. Bikes for short trips to nearby locations, to work, or shopping will
have a different design from bikes used for sports. Depending on the lifestyle and purpose
of use, they will have different designs.
Behavior Segmentation, it divided buyers into segments based on their knowledge, at
titudes, uses, or responses to a product