Market Segmentation • Market: all the people in a business’s area that are able to purchase a good or service • Target Market: specific group of people that a business is trying to reach • Market Segmentation: the way in which a market is analyzed by determining specific characteristics
Specific Characteristics • Demographics • Psychographics • Geographic • Behavioristic
Demographics • Statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnic background, education, religion, and occupation.
Psychographics • Studies of consumers based upon social and psychological characteristics such as attitudes, interests, and opinions • Women in the workforce • Urban population • Home and family activities • Travel • Work at home • Home computer use • Casual dress • Value of time over money • Larger clothing sizes
Geographics • Statistics about where people live • Region of the country • Size of the city or county • Density of the population • Urban, suburban, or rural
Behavioristics • Statistics about consumers based on their knowledge, attitudes, use, or response to the product • Purchase Occasion: Why was the product purchased? • Product Benefits: What benefits are gained from the use of the product? • Usage Level/Commitment: What level of commitment does the consumer have to the product? How often does the consumer use the product?
Diverse and Changing Markets • Due to the size and changing nature of the fashion industry, fashion marketers usually target several different markets. • GAP: • men, women, children • dressy and casual • regular and outlet stores