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Market segments have to be measurable, substantial, accessible, differentiable and actionable. Then one has to choose a strategy to pursue these segments. Starbucks has developed a multiple segmentation managing approach instead of just focusing on one segment.
When distinguishing segments in a market, segments are a group of customers sharing the same need, one can use several variables to do so. Amongst them are:
- Geographic segmentation
- Demographic segmentation
Age, life (-cycle) stage, gender, income, generation, social class
- Psychographic segmentation
Lifestyle, Values
- Behavioral segmentation
Decision roles, behavioral variables (occasions, benefits, user status, usage rate, buyer-readiness stage, loyalty status, attitude), conversion-attitude
After the segmentation (that means after defining the characteristics of the segment based on the above variables) one can start to target one or more of the segments...
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