JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND

TECHNOLOGY

NAME:

REDEMPTA MUTHEU MUTUA

REG NO:

HD333-C002-3768/2014

NAME:

AGNES MUENI MUTINDA

REG NO:

HD333-C002-4157/2015

COURSE:

MARKETING MANAGEMENT

ASSIGNMENT ONE:
Explain bases of segmenting consumer markets and target
marketing

PART ONE
BASES OF SEGMENTING CONSUMER MARKETS
The four bases for segmenting consumer market are as follows:
A. Demographic Segmentation
B. Geographic Segmentation
C. Psychographic Segmentation
D. Behavioral Segmentation.

A. Demographic Segmentation:
Demographic segmentation divides the markets into groups based on variables such as
age, gender, family size, income, occupation, education, religion, race and nationality.
Demographic factors are the most popular bases for segmenting the consumer group.
One reason is that consumer needs, wants, and usage rates often vary closely with the
demographic variables. Moreover, demographic factors are easier to measure than most
other type of variables.
1. Age:
It is one of the most common demographic variables used to segment markets. Some
companies offer different products, or use different marketing approaches for different
age groups..
2. Gender:
Gender segmentation is used in clothing, cosmetics and magazines.
3. Income:
Markets are also segmented on the basis of income. Income is used to divide the
markets because it influences the peoples product purchase. It affects a consumers
buying power and style of living. Income includes housing, furniture, automobile,
clothing, alcoholic, beverages, food, sporting goods, luxury goods, financial services and
travel.

4. Family cycle:
Product needs vary according to age, number of persons in the household, marital
status, and number and age of children. These variables can be combined into a single
variable called family life cycle. Housing, home appliances, furniture, food and
automobile are few of the numerous product markets segmented by the family cycle
stages. Social class can be divided into upper class, middle class and lower class. Many
companies deal in clothing, home furnishing, leisure activities, design products and
services for specific social classes.

B. Geographic Segmentation:
Geographic segmentation refers to dividing a market into different geographical units
such as nations, states, regions, cities, or neighborhoods. For example, national
newspapers are published and distributed to different cities in different languages to
cater to the needs of the consumers.
Geographic variables such as climate, terrain, natural resources, and population density
also influence consumer product needs. Companies may divide markets into regions
because the differences in geographic variables can cause consumer needs and wants to
differ from one region to another.

C. Psychographic Segmentation:
Psychographic segmentation pertains to lifestyle and personality traits. In the case of
certain products, buying behavior predominantly depends on lifestyle and personality
characteristics.
1. Personality characteristics:
It refers to a persons individual character traits, attitudes and habits. Here markets are
segmented according to competitiveness, introvert, extrovert, ambitious, aggressiveness,
etc. This type of segmentation is used when a product is similar to many competing
products, and consumer needs for products are not affected by other segmentation
variables.

2. Lifestyle:
It is the manner in which people live and spend their time and money. Lifestyle analysis
provides marketers with a broad view of consumers because it segments the markets
into groups on the basis of activities, interests, beliefs and opinions. Companies making
cosmetics, alcoholic beverages and furnitures segment market according to the lifestyle.

D. Behavioral Segmentation:
In behavioral segmentation, buyers are divided into groups on the basis of their
knowledge of, attitude towards, use of, or response to a product. Behavioral
segmentation includes segmentation on the basis of occasions, user status, usage rate
loyalty status, buyer-readiness stage and attitude.
1. Occasion:
Buyers can be distinguished according to the occasions when they purchase a product,
use a product, or develop a need to use a product. It helps the firm expand the product
usage. For example, Cadburys advertising to promote the product during wedding
season is an example of occasion segmentation.
2. User status:
Sometimes the markets are segmented on the basis of user status, that is, on the basis of
non-user, ex-user, potential user, first-time user and regular user of the product. Large
companies usually target potential users, whereas smaller firms focus on current users.
3. Usage rate:
Markets can be distinguished on the basis of usage rate, that is, on the basis of light,
medium and heavy users. Heavy users are often a small percentage of the market, but
account for a high percentage of the total consumption. Marketers usually prefer to
attract a heavy user rather than several light users, and vary their promotional efforts
accordingly.
4. Loyalty status:
Buyers can be divided on the basis of their loyalty statushardcore loyal (consumer who
buy one brand all the time), split loyal (consumers who are loyal to two or three brands),
shifting loyal (consumers who shift from one brand to another), and switchers (consumers who show no loyalty to any brand).

5. Buyer readiness stage:

The six psychological stages through which a person passes when deciding to purchase
a product. The six stages are awareness of the product, knowledge of what it does,
interest in the product, preference over competing products, conviction of the products
suitability, and purchase. Marketing campaigns exist in large part to move the target
audience through the buyer readiness stages.

PART TWO
TARGET MARKETING
What is target marketing?
Target marketing is about attracting customers who will buy what youre
selling.
In order to target market effectively, youll need to know exactly who
purchases your products and how to reach them and acquiring that kind of
knowledge requires some research and planning on your end.
Researching your target market
New technologies can make nailing down your demographics and
psychographics much easier than in the past.
At the bare minimum, these are the things you should know about your
target customers:

What is their gender

How old are they

What are their interests or hobbies

Where do they live

How do they make a living

How much money do they make

Do they own their own homes or do they rent

The key is to collect information, and then compare it to the assumptions

youve made about your customers.
Identifying Target Market
Given the current state of the economy, having a well-defined target market
is more important than ever. No one can afford to target everyone. Small
businesses can effectively compete with large companies by targeting a
niche market.

Targeting a specific market does not mean that you are excluding people
who do not fit your criteria. Rather, target marketing allows you to focus your
brand message on a specific market that is more likely to buy from you than
other markets. This is a much more affordable, efficient, and effective way to
reach potential clients and generate business.
1. Your current customer
Who are your current customers, and why do they buy from you? Look for
common characteristics and interests. It is very likely that other people like
them could also benefit from your product/service

2. Check out your competition.

Who are your competitors targeting? Who are their current customers? Don't
go after the same market. You may find a niche market that they are
overlooking.
3. Analyze your product/service.
Write out a list of each feature of your product or service. Next to each
feature, list the benefits it provides.
Once you have your benefits listed, make a list of people who have a need
that your benefit fulfills.

4. Choose specific demographics to target.

Figure out not only who has a need for your product or service, but also who
is most likely to buy it. Think about the following factors:
Age

Location

Gender

Income level

Education level

Marital or family status

Occupation

Ethnic background

5. Consider the psychographics of your target.

Psychographics are the more personal characteristics of a person, including:

Personality

Attitudes

Values

Interests/hobbies

Lifestyles

Behavior
Determine how your product or service will fit into your target's lifestyle.
6. Evaluate your decision.
Once you've decided on a target market, be sure to consider these
questions:

Are there enough people that fit my criteria?

Will my target really benefit from my product/service? Will they
see a need for it?

Do I understand what drives my target to make decisions?

Can they afford my product/service?

Can I reach them with my message? Are they easily accessible?

Don't break your target down too far. Remember, you can have more than
one niche market. Consider if your marketing message should be different for
each niche market. If you can reach both niches effectively with the same
message, then maybe you have broken down your market too far. Also, if you
find that there are only 50 people that fit all of your criteria, maybe you
should reevaluate your target. The trick is to find that perfect balance.
You may be asking, "How do I find all this information?" Try searching online
for research others have done on your target. Search for magazine articles
and blogs that talk about your target market or that talk to your target
market. Search for blogs and forums where people in your target market
communicate their opinions. Look for survey results, or consider conducting
a survey of your own. Ask your current customers for feedback.

Conclusion

Defining your target market is the hard part. Once you know who you are
targeting, it is much easier to figure out which media you can use to reach
them and what marketing messages will resonate with them. Save money
and get a better return on investment by defining your target audience.
Reference books
1.Phillip Kotler and Gray Armstrong(2001)principles of marketing.Delhi
prentince hall