ABSTRACT
This chapter discusses the purpose and value of segmentation, and describes different segmentation categories and primary and secondary target audiences. It also describes four primary Integrated Marketing Communication (IMC) consumer segmentation categories that are used extensively for creative and media planning purposes: demographic, geographic, psychographic, and purchase/usage segmentation. Marketing segmentation is a result of five business realities. First, and most important, is the cost of advertising media. Second is the relevancy of creative content, especially the words and images. Third, the affordability of brands for people with different incomes or socioeconomic status influences company sales and profit potential. Fourth is the positioning of products within the marketplace based on user benefits, product features, or perceived images. Fifth is the maximum marketing budget approved for a brand or a company. Demographic segmentation includes variables such as the age, gender, income, marital status, family composition, occupation, education, ethnic association, and other characteristics that separate people based on their differences.
