Question

Segment the market and describe the typical customer of Starbucks by behavior, demographics, geography, and psychographics

Answer 1

Market segmentation is the process of dividing a target market of potential customers into segments with common characteristics. Through a process of audience analysis, segments are composed of consumers who respond similarly to marketing strategies and share traits such as similar interests, needs, or locations. Marketers often measure their performance at attracting these market segments with KPIs like share of voice.

Type of segmentation	Segmentation criteria	Starbucks target customer segment
Geographic	Region	US, Canada, Latin America, Europe, Middle East, Africa, China and Asia Pacific region
Density	Urban
Age	22 – 60
Gender	Males & Females
Demographic	Life-cycle stage	Bachelor Stage young, single people not living at home
Newly Married Couples young, no children
Full Nest I youngest child under six
Full Nest II youngest child six or over
Full Nest III older married couples with dependent children
Occupation	Students, employees, professionals
Behavioral	Degree of loyalty	‘Hard core loyals’
Benefits sought	Enjoying quality coffee in a relaxing atmosphere
A place to chat with friends and relatives
A place to work
Personality	Easygoing, determined and ambitious
User status	Regular users
Psychographic	Social class	Middle and upper class