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Marketing Techniques P5

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Submitted By maarryyaamm
Words 1019
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Task: Explain how and why groups of customers are targeted for selected products.
In this assignment I will be explaining what market segmentation is; I will also explain the different types of market segmentations and also how Tesco use market segmentation when selling a particular product. Furthermore I will take account of what business to consumer and business to business marketing is and I will explain how Tesco use them.
Market segmentation is a marketing strategy which consists of dividing and breaking down a broad target market into subsections of consumers, businesses, or countries that have, or are thought to have, common needs, interests, and priorities, and then applying strategies to target them. There are usually four types of segmentations businesses will use. These are: geographical segmentation, demographic segmentation, psychographic segmentation and behavioural segmentation.

The geographical segmentation divides customers into segments based upon the geographical areas such as nations, regions, counties, cities or neighbourhoods. This could compare to spending levels, income levels, employment levels and buying habits for places around geographical areas. Tesco would use the geographical segmentation to find out where they should set up their stores. This could mean more affluent places to bring in more customers which can buy the top end products and in a place where there is barely a supermarket as this will attract all people around the geographical area.

Demographic segmentation refers to the ways of separating people according to their characteristics. There are three main ways of demographic segmentation, one which is age because people of different ages buy different products or services. Gender as men and women behave different and buy different things and finally income as people with different disposable income levels will

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