Market Segmentation: An Introduction

Market Segmentation

• ​Meaning

• Basis​

• Definition of a Market

• Different Types of Markets

• Mass Marketing

Previously...

Today - March 15, 2022...

• Handout: "Table of Consumer Variables"

• ​A notebook and pen/pencil

• A personal computer

• Access to the internet​

• ​Microsoft Teams

• Quizizz Learning Platform​

Attendance will be taken on the Quizizz platform.

• Thinking about the clothing and footwears that you bought recently or plan to buy, list at least two brands that you prefer to buy.

• ​What are some of the personal characteristics that influence your choice of products/brands? Think about your hobbies, how you like to dress, your part-time jobs, your likes/dislikes, your current stage of life, etc.

​Example:

Definitions

A Market Segment is a subgroup of consumers within a larger group who have similar characteristics which cause them to have similar product needs and brand preferences.

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​Market Segmentation is the process of separating the larger market into smaller markets or market segments that consist of similar groups of consumers.

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Source: Better Business, Second Canadian Edition

Basis for Segmentation

​​Which of the following factors affect your buying decision?

• What is the Levi's commercial about?

• How would you describe this brand in terms of price and quality?

• Levi's is talking the language of a specific group of buyers. Describe the characteristics of this group.

• Does this ad make you want to buy Levi's brand of clothing? Why or why not?

• In your own words, define Market segmentation.

• From the Table of Consumer Variables, identify at least, four variables that influence your choice of clothing/footwear (or any item) brands.

• Thinking about the brands and personal characteristics that you listed during the warm-up activity, identify, and write down the common variables that influence your choice for those brands.

• NEXT CLASS: The Importance of Market Segmentation / Four Categories of Market Segmentation.

​Example:

Learning Platform: Quizizz

Handout: Better Business, 2nd Canadian Edition

​YouTube Videos:

• "An Introduction to Market Segmentation" by Kyle Murray

• ​"Buy Better, Wear Longer" by Levi's