ABSTRACT
Consumer brand segments can be defined and classified on the basis of countless characteristics. Sometimes the characteristics reflect basic demographics, sometimes needs and lifestyle, sometimes behavioral patterns that relate to the product or brand. This chapter distinguishes two different segmentation approaches. One is forward segmentation and the other is backward segmentation. The central strategic issue in segmentation is not just understanding and describing a segment, but selecting segments for effort and concentrating resources on them to the exclusion of alternatives. The chapter also distinguishes the development of brand segmentation strategies: penetration, frequency, continuity, and winning back. The three most important factors determining Harley Davidson's segmentation strategy, then, are consumers' behavior and attitudes relative to the category, consumers' behavior and attitudes relative to the brand, and the behavior and attitudes of consumers of the competing brands.
