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SEGMENTATION

SEGMENTATION. By Elisante Ole Gabriel (Tanzania) Chartered Marketer egabriel@edenconsult.net , www.olegabriel.com +255-784-455-499. What is Segmentation?. This is a process of grouping customers with homogeneous needs for the sake of offering them a better service.

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SEGMENTATION

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  1. SEGMENTATION By Elisante Ole Gabriel (Tanzania) Chartered Marketer egabriel@edenconsult.net, www.olegabriel.com +255-784-455-499

  2. What is Segmentation? • This is a process of grouping customers with homogeneous needs for the sake of offering them a better service. Target marketing involves the following: • Identify distinct groups (Segmentation), select one or more (Targeting), Communicate your CA (Positioning) = STP

  3. Levels of Segmentation • Mass Marketing: The marketers engages in Mass production, Mass distribution and mass promotion = Eco of scale & scope • Segment Marketing: A process of grouping homogeneous needs. A marketer does not create a segment but but identifies and manages. • Niche,Local & Individual customer marketing.

  4. Patterns of Segmentation • Homogeneous preference: All consumers roughly has the same preference, eg change to two years of MBA. • Diffused preferences: Preferences scattered all over the place • Clustered preferences: Small subgroups

  5. Bases for Segmentation • Geographical factors • Demographic (Sex, Age, family size, income, Education, religion, etc) • Psychographic factors: Lifestyle, personality or values. People within the same demographic group can have different psychographic profiles.

  6. Finally The concept of Product life cycle (PLC) • What is this concept about • Stages • Relationship with BCG • Critiques of PLC, connected to BCG • The concept of profitability in PLC

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