INSTRUCTOR MANUAL
Instructor’s Manual for Principles of Marketing
01/12/23 1
,Instructor’s Manual for Principles of Marketing
Chapter 5:
Market Segmentation, Targeting,
and Positioning
Chapter Outline
5.1 Market Segmentation and Consumer Markets
Learning Outcomes
Define market segmentation.
Describe the benefits of market segmentation
Discuss methods of segmenting consumer markets.
Section Outline
Market Segmentation Defined
The Advantages of Market Segmentation to the Organization
Methods of Segmenting Consumer Markets
Link to Learning: Pareto Principle
Link to Learning: Social Media Segmentation
Link to Learning: Personality Segmentation
Using Multiple Segmentation Bases
Careers in Marketing: Market Research Analyst
Section 5.1 Summary
Market segmentation is the process of dividing a market into smaller, more precisely defined
groups of consumers or organizations who have common needs and are expected to respond
similarly to a marketing action. Marketers successfully use geographic (where), demographic
(who), behavioral (how), and psychographic (why) segmentation not only to reach important
customers efficiently, but also to improve product development and brand loyalty (see Figure
5.2).
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, Instructor’s Manual for Principles of Marketing
Figure 5.2 Geographic Market Segmentation (attribution: Copyright Rice University, OpenStax,
under CC BY 4.0 license)
In addition to utilizing activities/interests/opinions (AIO), marketers also employ
values/attitudes/lifestyles (VALS) to better understand consumer behavior (see Figure 5.6).
Finally, many businesses find success in using multiple segmentation bases to better reach
target audiences. For instance, the Minnesota Twins baseball team uses both geographic
(potential fans living in Minnesota or surrounding states) and psychographic (baseball fans who
enjoy attending live professional baseball games outdoors) segmentation.
Figure 5.6 The VALS Framework (attribution: Copyright Rice University, OpenStax, under CC BY
4.0 license)
01/12/23 3
Instructor’s Manual for Principles of Marketing
01/12/23 1
,Instructor’s Manual for Principles of Marketing
Chapter 5:
Market Segmentation, Targeting,
and Positioning
Chapter Outline
5.1 Market Segmentation and Consumer Markets
Learning Outcomes
Define market segmentation.
Describe the benefits of market segmentation
Discuss methods of segmenting consumer markets.
Section Outline
Market Segmentation Defined
The Advantages of Market Segmentation to the Organization
Methods of Segmenting Consumer Markets
Link to Learning: Pareto Principle
Link to Learning: Social Media Segmentation
Link to Learning: Personality Segmentation
Using Multiple Segmentation Bases
Careers in Marketing: Market Research Analyst
Section 5.1 Summary
Market segmentation is the process of dividing a market into smaller, more precisely defined
groups of consumers or organizations who have common needs and are expected to respond
similarly to a marketing action. Marketers successfully use geographic (where), demographic
(who), behavioral (how), and psychographic (why) segmentation not only to reach important
customers efficiently, but also to improve product development and brand loyalty (see Figure
5.2).
01/12/23 2
, Instructor’s Manual for Principles of Marketing
Figure 5.2 Geographic Market Segmentation (attribution: Copyright Rice University, OpenStax,
under CC BY 4.0 license)
In addition to utilizing activities/interests/opinions (AIO), marketers also employ
values/attitudes/lifestyles (VALS) to better understand consumer behavior (see Figure 5.6).
Finally, many businesses find success in using multiple segmentation bases to better reach
target audiences. For instance, the Minnesota Twins baseball team uses both geographic
(potential fans living in Minnesota or surrounding states) and psychographic (baseball fans who
enjoy attending live professional baseball games outdoors) segmentation.
Figure 5.6 The VALS Framework (attribution: Copyright Rice University, OpenStax, under CC BY
4.0 license)
01/12/23 3
