Road Warriors (16%): Generally higher income middle-aged men who drive 25,000 to 50,000 miles a year…buy premium with a credit card…purchase sandwiches and drinks from the convenience store…will sometimes wash their cars at the carwash. True Blues (16%): Usually men and women with moderate to high incomes who are loyal to a brand and sometimes to a particular station…frequently buy premium gasoline and pay in cash. Generation F3 (27%): (for fuel, food and fast): Upwardly mobile men and women - half under 25 years of age-who are constantly on the go…drive a lot and snack heavily from the convenience store. Homebodies (21%): Usually housewives who shuttle their children around during the day and use whatever gasoline station is based in town or along their route of travel. Price Shoppers (20%): Generally aren’t loyal to either a brand or a particular station, and rarely buy the premium line…frequently on tight budgets…efforts to woo them have been the base of marketing strategies for years.
How to segment a market for candles? (MacMillan & McGrath 1997 in major readings)
Segmentation Variables for Organisational Buyers • Type of industry • Size • Geographical location • Stage of development • Producer/intermediary • Brand preferences • Desired features • Service requirements • Performance requirements • Nature of existing relationships • Volume of purchase • Frequency of purchase Segmentation closely follows individual customers
Criteria for Effective Segmentation (see Harvard Business School Press 1978 in major readings) Homogeneous within segment • Responses similar within segment Differentiable across segments • Responses different across segments Identifiable •
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