Marketing Sectors & Segments

market sector

A broad way of categorizing the kinds of markets a company is aiming for. Example:

Mobile Telecommunications MarketAir Travel

market segmentation

Markets divided up into smaller segments where the purchasers have similar characteristics and tastes.Example:

Mobile Telecommunications Sector > Private users, Business Users, Pay-as-you-go

Air Travel Sector > Business Travellers

market segmentation

• Demographics: e.g. age, gender, income, profession, family

• Geographics: e.g. by country, rural/urban areas

• Psychographics: e.g. values; lifestyle; or behavioural factors, e.g. brand loyalty, occasion buying, impulsive, online vs brick ‘n mortar

market segmentation examples

• income (high, middle and low levels of finance) – Daewoo and Corolla vehicles for price sensitive customers whereas Mercedes and BMW aim their cars at the more affluent.

market segmentation examples

• age (babies, toddlers, tweens, teenagers, young adults, middle aged to the elderly) – such as diapers/nappies for babies, toys for children, clothes for teenagers

market segmentation examples

• family – (single no kids, single kids, married two kids, empty nesters etc)

market segmentation examples

Ethnicity

market segmentation examples

• geographics

market segmentation examples

• values (the ethical, worthiness or importance of something that is held by an individual or group, opinions) – environmentally friendly products vs a throw away society.

market segmentation examples

• Psychographic

market segmentation examples

• behaviour (shopping mannerisms, loyalty, occasion buying, such as impulsive, online vs brick ‘n mortar, or the researcher) – buying turkeys at Christmas and thanksgiving (occasion buying), Apple customers (loyalty),

MacDonald’s Segmentation

How the needs of the market segment impacts on the design of products and scale of production.

Product FamilyProducts within a product family normally have many common parts and assemblies, are branded consistently and share aesthetic characteristics.

This can be a successful initiative.If a consumer has a good experience with a particular product they are more likely to purchase another associated product from the same manufacturer.

Product Family

Test Yourself

• What are Market Sectors? Name and describe four Market Sectors.

Test Yourself

• What are Market segments? Name and describe four different products and suggest what market segment they are to be designed and sold to/for.

Task

• Identify the market sector for the product your are designing

• From your research you should be able to carry out a market segmentation to identify your target market and specifically your target audience

• Explain to the SL students how to carry out this task