Demographic Segmentation

Date: 2015-10-07; view: 591.

Geographic Segmentation

Segmentation, targeting, and positioning (STP)

Today one of the most commonly applied marketing models in practice is Segmentation, Targeting and Positioning (STP). The STP model is useful when creating marketing communications plans since it helps marketers to priorities propositions and then develop and deliver personalized and relevant messages to engage with different audiences.

Market segmentation is dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.Why we need market segmentation? There are next reasons:

· Identifies opportunities and needs.

· Allows firm to focus on specific needs.

· Improves marketing mix for each segment.

· Allows small firm to exist.

Geographic segmentation divides the market into geographical units such as nations, states, regions, counties, cities, or neighborhoods. The company can operate in one or a few areas, or it can operate in all but pay attention to local variations.

In demographic segmentation, we divide the market on variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class. One reason demographic variables are so popular with marketers is that they're often associated with consumer needs and wants. Another is that they're easy to measure. Even when we describe the target market in non-demographic terms (say, by personality type), we may need the link back to demographic characteristics in order to estimate the size of the market and the media we should use to reach it efficiently.