Question

According to the textbook, segmentation variables can be grouped into the following categories: geographic, demographic, psychographic and behavioral. Describe each of these groups of segmentation variables. Imagine that you have been hired as VP of Marketing for the U.S. market for Seiko. How would you use these segmentation variables to market Seiko watches?

Answer 1

TARGET MARKET SEGMENTATION:

Geographic:

City: Tier-1, Tier-2, Metro

Area: Urban & Semi-urban areas

Demographic:

                Socio Economic class: middle & upper class people

Occupation: working professional & executives, business man

Psychographic:

                Lifestyle: Sports, Outdoor oriented, fun loving, Travellers

Personality: Ambitious, Gregarious

Behavioural:

                Occasions: Regular, Festive

Benefits: Quality, Service, Economy

Usage Rate: Light, Medium & Heavy users

Loyalty Status: None, Medium & Strong

For SEIKO, Segmentation variables as:

Customer Target Group as per Geo and Demographics- Middle Income level Men and Women, Tier-1/2, metro cities

As per Psychographic- working professional/ business men with rich or medium-high life style

As per Behavioural- people who seek Quality and Brand