Name: Eric Asare
Assignment: 3 unit 3 p5
Teacher: Charles Musana
Class: 1G
Introduction
In this assignment I will define both market segmentation and consumer segmentation. I will also choose six products, explain
how their company’s customers are targeted and explain why customers are targeted this way.
Market Segmentation
The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs,
wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of
customers in the targeted segment. There are a range of advantages for both the consumer and the business:
• Better serving customers’ needs and wants: The business can market certain products, specifically
tailored to the customer needs. Some businesses will do this through separating their products into
categories, and advertise them to the age group, or lifestyle they are suitable for.
• Higher profits: Businesses can develop premium segments in which customers accept a higher price level.
These segments could feature additional services/extra products, exclusive points of sale, and product
variations. You could also add personal features to the product to make it more valuable and attractive
e.g. engraving names, specific colours, exclusive editions.
• Opportunities for growth: By segmenting markets, organisations can create their own ‘niche’ products and
thus attract additional customer groups. A strategy based on customer loyalty, attracts new customers
with starter products as well as moving regular customers to more premium products and services.
• Targeted Communication: This allows organisations to stress those criteria that are most relevant for each
particular segment.
Market Segmentation allows businesses to tailor the marketing mix for specific target markets, rather than offering the same
marketing to vastly different products, making it easier to satisfy the customer’s needs.
Consumer Market Segmentation
A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. The
optimal basis on which to segment the market depend on particular situation and are usually determined by market research,
market trends and managerial judgement. There are also the four primary bases on which to segment a consumer market
based on the individual:
1 | Page
, Name: Eric Asare
Assignment: 3 unit 3 p5
Teacher: Charles Musana
Class: 1G
• Geographic Segmentation: based on regional variables such as region, climate, population density, and
population growth rate.
• Demographic Segmentation: based on age, gender, ethnicity, education, occupation, income and family
status.
• Psychographic Segmentation: based on values, attitudes and lifestyle.
• Behavioural Segmentation: based on usage rate and patterns, price sensitivity, brand loyalty and benefits
sought.
Company Picture of the B to B, C Target How Why customers are targeted
name and product and to C ,B to market. customers are this way.
logo. name of the C. targeted.
Product.
Red Bull Red Bull B to C All Red Bull This is because they knows
energy drink classes, advertise their that some people need
18 to 48, products on energy so they advertise
athletes, extreme sports extreme sports which shows
males events and that red bull can give people
and channels in enough energy for them to do
females. order to target those extreme sports.
18 to 48,
athletes,
males and
females.
Coca Cola Coca Cola B to C All Coca Cola This is because they know
drink classes, advertise their that people of all classes, all
all ages, products on ages, males and females
males family watch those channels so by
and channels such showing a family drinking
females. as ITV, BBC Coca cola in their adverts
one, Channel represents their target
4, Sky 1 and market which influences their
2 | Page
Assignment: 3 unit 3 p5
Teacher: Charles Musana
Class: 1G
Introduction
In this assignment I will define both market segmentation and consumer segmentation. I will also choose six products, explain
how their company’s customers are targeted and explain why customers are targeted this way.
Market Segmentation
The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs,
wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of
customers in the targeted segment. There are a range of advantages for both the consumer and the business:
• Better serving customers’ needs and wants: The business can market certain products, specifically
tailored to the customer needs. Some businesses will do this through separating their products into
categories, and advertise them to the age group, or lifestyle they are suitable for.
• Higher profits: Businesses can develop premium segments in which customers accept a higher price level.
These segments could feature additional services/extra products, exclusive points of sale, and product
variations. You could also add personal features to the product to make it more valuable and attractive
e.g. engraving names, specific colours, exclusive editions.
• Opportunities for growth: By segmenting markets, organisations can create their own ‘niche’ products and
thus attract additional customer groups. A strategy based on customer loyalty, attracts new customers
with starter products as well as moving regular customers to more premium products and services.
• Targeted Communication: This allows organisations to stress those criteria that are most relevant for each
particular segment.
Market Segmentation allows businesses to tailor the marketing mix for specific target markets, rather than offering the same
marketing to vastly different products, making it easier to satisfy the customer’s needs.
Consumer Market Segmentation
A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. The
optimal basis on which to segment the market depend on particular situation and are usually determined by market research,
market trends and managerial judgement. There are also the four primary bases on which to segment a consumer market
based on the individual:
1 | Page
, Name: Eric Asare
Assignment: 3 unit 3 p5
Teacher: Charles Musana
Class: 1G
• Geographic Segmentation: based on regional variables such as region, climate, population density, and
population growth rate.
• Demographic Segmentation: based on age, gender, ethnicity, education, occupation, income and family
status.
• Psychographic Segmentation: based on values, attitudes and lifestyle.
• Behavioural Segmentation: based on usage rate and patterns, price sensitivity, brand loyalty and benefits
sought.
Company Picture of the B to B, C Target How Why customers are targeted
name and product and to C ,B to market. customers are this way.
logo. name of the C. targeted.
Product.
Red Bull Red Bull B to C All Red Bull This is because they knows
energy drink classes, advertise their that some people need
18 to 48, products on energy so they advertise
athletes, extreme sports extreme sports which shows
males events and that red bull can give people
and channels in enough energy for them to do
females. order to target those extreme sports.
18 to 48,
athletes,
males and
females.
Coca Cola Coca Cola B to C All Coca Cola This is because they know
drink classes, advertise their that people of all classes, all
all ages, products on ages, males and females
males family watch those channels so by
and channels such showing a family drinking
females. as ITV, BBC Coca cola in their adverts
one, Channel represents their target
4, Sky 1 and market which influences their
2 | Page
