Segmentation and Targeting

Market segmentation is the process of dividing a market into distinct subsets, 

where any subset may conceivably be selected as a marketing target to be 

reached with a distinct marketing mix.

1. Characteristics of the  Customer 

 II. Benefits Sought 

III. Systematic, Product-Related Behaviors 

 purchasing behavior 

 by channel

regional segmentation 

 zip clustering 

◦ distinct marketing strategies created for similar 

types of neighborhoods stretched across the nation 

◦ e.g., PRIZM

What makes a segment attractive? 

 Balancing Segment Attractiveness with our 

Capability. 

 Continuously monitoring whether the actual 

buyers match the target segment

Segment Size

• Growth of Segment

• Value of Segment ($) 

• Stability 

• Current Company position within 

 segment 

• Ease of entry into segment 

• Ease of competitive entry into segment 

• Number and strength of competitors