XYZ Company launches soft drinks. As marketing manager I suggest the following variables for

segmenting the market of soft drinks:

1.0 Geographic Segmentation:

Geographic segmentation means dividing the market into different geographical units such as

nations, regions, states, countries, cities. On the other hand Segmentation of consumers based on

geographical factors such as location, weather, topography, population density, etc.

2.0 Demographic Segmentation:

Company should dividing the market into groups based on variables such as age, gender, family

size, family life cycle, income, occupation, education, religion, race, generation and nationality.

Demographics can be used to help companies develop products that meet current and future

consumer needs.

Age and Life-cycle Stage:

Dividing the market into different age and life-Cycle groups. Segmenting the consumer market

by age groups is useful for several products. For example, the youth market (approximately 5 to

13) influences how their parents spend money, and when they make purchases on their own (e.g.

toys and snacks).Presently, the senior market (age 65 and over) has grown in importance for

producers of low-cost housing, cruises, and health care.

Gender Segmentation:

Gender has historically been a good basis for market segmentation. The emergence of the

working woman, for instance, has made determining how the family income is spent more

difficult. Income seems a better basis for segmenting markets as prices for a product increases.

Income may also may uncover other buying behaviors.

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Income Segmentation:

Dividing the market into different income group. So if the customers are segmented as

per the annual or monthly income, then this process will be called the income

segmentation. Income segmentation is best suited for products which are very specific

and are priced high.

3.0 Psychological Segmentation:

Segmentation of markets based on psychological influences, such as personality, lifestyle

choices, and attitudinal variables.

Life Style:

Nowhere in the field of mass communication research has the concept of `lifestyle' been so

prominently and fruitfully used as in the field of marketing communication, where it has been

shown that lifestyles influence both consumption patterns and the processing of different forms of

marketing communication. Therefore, the lifestyle concept has become the core of a special kind

of segmentation research called `psychographics.

Motivation:

According to various theories, motivation may be rooted in a basic need to minimize physical

pain and maximize pleasure; it may include specific needs such as eating and resting, or a desired

object, goal, state of being, or ideal; or it may be attributed to less-apparent constructs such as

altruism, selfishness, morality, or avoiding mortality.

3.0 Behavioral Segmentation:

A more focused form of market segmentation that groups consumers based on specific behavioral

patterns they display when making purchasing decisions enabling producers to adapt their

marketing approach to specific groups. Grouping patterns may include such behaviors as

spending, consumption, life style, usage, and desired benefits.

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Segmentation by occasions:Segmentation according to occasions relies on the special needs and desires of consumers on

various occasions.

My family recently purchases these five items:1. Toothpaste2. Salt3. Razor4. Digital Camera5. Car

My family buying regular brand of toothpaste, salt, and razor would recognize the need

and go right to the purchase decision, skipping information search and evaluation. When

my family purchase digital camera and car we use the buyer decision process consists of

five stages:

1. Need recognition.

2. Information search.

3. Evolution of alternatives.

4. Purchase decision.

5. Post purchase behavior.

1. Need recognition:The buying process starts with need recognition- my family recognizes a problem or

need. The need can be triggered by internal stimuli when one of the person’s normal

needs- hunger, thirst, and sex- rises to a level high enough to become a drive. A need can

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also be triggered by external stimuli. My family discussion with a friend might get

thinking about buying a new car and digital camera. At this stage, the marketer should

research consumers to find out what kind of needs or problems arise, what brought them

about, and how they led the consumers to this particular product.

2. Information Search:An interested consumer may or may not search for more information. If the consumers

drive is strong and a satisfying product is near at hand, the consumer is likely to buy it

then. If not, the consumer may store the need in memory or undertake an information

search related to the need. My family decided to buy a new car and digital camera, at the

least, my family probably pay more attention to car ads, car owned by friends, and car

conversation. My family actively searches the Web, talk with family friends, and gather

information in other ways. The amount of searching my family depend on the strength of

drive, the amount of information my family start with, the ease of obtaining more

information, the value place on additional information, and the satisfaction get from

searching.

My family gets information several sources. Personal sources such as family, friends,

neighbors, acquaintances. Commercial sources such as advertising, salespeople, dealer

Web sites, packaging, displays etc. Public sources such as mass media, consumer rating

organization, internet searches and Experimental sources handling, examine, using the

product. In our car information search we learn about the several brands available. Such

as Tata, Suzuki, Lexus.

3. Evolution of Alternatives:My family uses information to arrive at a set of final brand choices. How does consumer

choose alternative brands? The marketer needs to know about alternative evolution- that

is how consumer process information to arrive at brand choices. Unfortunately,

consumers do not use a simple and single evaluation process in all buying situation. My

family takes several evaluation processes at work. My family makes buying decision

own and consumer guides. My family choices three brand and primarily instead in four

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attributes- styling, operating economy, warranty and price. By this time probably formed

beliefs about how each brand rates on each attribute. Clearly, if one car rated best on all

the attributes, we could predict that would choose it. However, the brands will no doubt

vary in appeal. We might base our buying decision on only one attribute and choice is

easy to predict.

4. Purchase Decision:In the evaluation stage, the consumer ranks brands and forms purchase intentions.

Generally, the consumers purchase decision will be to buy the most proffered brand, but

two factors can come between the purchase intention and the purchase decision. The first

factor is the attitude of others. If someone important to you thinks that should buy the

lowest-priced car, then the chances of you buying a more expensive car are reduced.

The second factor is unexpected situational factors. The consumer may form a purchase

intention based on factors such as expected income, expected price, and expected product

benefits. However, unexpected events may change the purchase intention. For example,

the economy might take a turn for the worse, a close competitor might drop its price, or a

friend might report being disappointed in our preferred car. Preferences and even

purchase intention do not always result in actual purchase choice.

5. Post purchase Decision:

The marketers job does not end the product is bought. After purchasing the product, the

consumer will be satisfied or dissatisfied and will engage in post purchase behavior of

interest to the marketer. What determines whether the buyer is satisfied or dissatisfied

with a purchase? The answer lies in the relationship between the consumer expectations

and the product perceived performance. If the product falls short of expectation, the

consumer is disappointed; if it meets expectations, the consumer satisfied; if it exceeds

expectation the consumer is delighted. The larger the gap between expectation and

performance, the greater the consumers dissatisfaction.

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Almost all major purchase results in cognitive dissonance, or discomfort caused by post

purchase conflict. Consumers are satisfied with the benefits of the chosen brand and are

glad to avoid the drawbacks of the brands not bought. Customer satisfaction is a key to

building profitable relationship with consumer- to keeping and growing consumers and

reaping their customer lifetime value. Satisfied customers buy a product again, talk

favorably to others about the product, pay less attention to competing brands and

advertising, and buy other product from the company.

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