Page 114 - DMGT408DMGT203_Marketing Management

Unit 5: Designing a Customer-driven Strategy .......

5.2.7 Geo-demographic Segmentation (Hybrid Approach) Notes

This approach is based on the premise that people who live close to one another are likely to
have similar economic status, tastes, preferences, lifestyles and consumption behaviour.
Geo-demographic segmentation is particularly useful when a marketer is capable of isolating
its prospects with similar personalities, goals, interests and in terms of where they live. For
products and services used by a wide cross-section of society, this approach may not be suitable.

Task Collect three advertisements for:
1. consumer non-durable product,
2. consumer durable product, and

3. a service product.
Determine what segments the ads are directed at.

Self Assessment

Multiple Choice Questions:
3. Daily newspapers have to follow …………………… segmentation.
(a) Lifestyle (b) Geographic
(c) Income (d) Benefit

4. Cosmetics companies segment the market on the basis of …………………….
(a) Geography (b) Demography
(c) Income (d) Social class
5. When individuals are guided in their choices by their beliefs and principles and not by
feelings, desires and events, they are said to be motivated by …………………….
(a) Ideals (b) Achievements
(c) Self-expression (d) Action

6. …………………… try to emulate those with higher incomes and possessions, generally
beyond their reach.
(a) Believers (b) Achievers

(c) Strivers (d) Survivors
7. Segmentation on the basis of which of the following variables is not a part of behaviouristic
segmentation?

(a) Usage rate (b) User status
(c) Loyalty status (d) User opinions

5.3 Targeting Marketing Segments

Instead of aiming a single product and marketing programme at the mass market, most companies
identify relatively homogeneous segments and accordingly develop suitable products and

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