MARKET SEGMENTATION
CHAPTER 5
THE PROCESS OF FORMING A MARKET
Seomgyun Lee
Needs, Wants, &
Demands
Marketing Offers
[products, services, &
experiences]
Value & Satisfaction
Exchange, Transactions,
& Relationships
Markets
THE PROCESS OF FORMING A MARKET
Seomgyun Lee
Needs, Wants, &
Demands
Marketing Offers
[products, services, &
experiences]
Value & Satisfaction
Exchange, Transactions,
& Relationships
Markets
CREATING VALUE
SATISFYING
CUSTOMER NEEDS
BUILDING STRONG
RELATIONSHIP
SEGMENTATION
Seomgyun Lee
What is Market Segmentation?
✓The process of dividing a market into distinct groups of consumers who have different needs,
characteristics, or behaviors (Kotler & Armstrong, 2011).
✓Dividing a broad, large, heterogeneous market into more homogeneous groups of people
(Mullin et al., 2007).
✓Identifying groups of consumers based on their common needs (Shank, 2009).
SEGMENTATION
Criteria for market segmentation (see Ch.2 slide #15)
Demographic:
Age/Family size/Income/Race
Psychographics:
Attitudes/Interests/Beliefs/Motives
