Segmentation
• Market Segmentation –
aggregation of prospective
buyers into groups that
have common needs and
respond similarly to
marketing programs
– Relatively homogeneous
– Similar consumption
behaviour, attitudes, and
profiles
– Leads to Product
Differentiation
ENCS 692 Communication for Innovation
Step 1: establish overall strategy or objectives
Consistent with
mission statement
Derived from
mission & current
state
ENCS 692 Communication for Innovation
Planning and Decision Making
• Vision: an encompassing explanation of why the company
exists and where it is trying to head.
• Values: a set of fundamental beliefs that guide a business in the
decisions it makes.
• Mission statement: an outline of the fundamental purposes of
an organization.
• Goals: the broad long-term accomplishments an organization
wishes to attain.
• Objectives: Specific, measurable, short-term statements
detailing how to achieve the organization's goals.
ENCS 692 Communication for Innovation
Sample Mission Statements
Maple Leaf Sports and Entertainment Ltd.’s mission: “Bring the world to its feet.”
Google’s mission: “To organize the world’s information and make it universally
accessible and useful.”
Nike’s mission: “To bring inspiration and innovation to every athlete* in the world. *If
you have a body, you are an athlete.”
Starbuck’s mission: “To inspire and nurture the human spirit—one person, one cup and
one neighborhood at a time.”
Loblaw Companies Ltd.’s mission: “Live Life Well - Supports the needs and well-being
of Canadians.”
FGL Sports’ mission: “To help Canadians live healthy, active lives.”
Sources: According to the websites of MLSE, [Link] Google, [Link]
company/; Nike, [Link] Starbuck’s, [Link] Loblaw
Companies Ltd., [Link] and FGL Sports, [Link]
All accessed July 7, 2018.
ENCS 692 Communication for Innovation
Step 2: segmentation bases
Segmentation
Sample Segments
Base
Geographic Continent (North America, Asia, Europe, Africa), country, region (West
Coast, Prairies, Central, Maritimes), province, city, urban, suburban,
rural, climate
Demographic Age, gender, income, education, occupation, race, marital status, family
size, family life cycle, religion, ethnic background (white, black, Asian,
Indian, German, Irish, Arab), generational cohort (baby boomer,
Generation X, Generation Y), home ownership
Psychographic Lifestyle (Innovators, Thinkers, Achievers, Experiencers, Believers,
Strivers, Makers, Survivors), personality/self-concept (conservative,
liberal, adventuresome, outgoing, health- and fitness-conscious), social
class (upper class, middle class, working class)
Behavioral Benefits sought (convenience, economy, prestige, quality, speed,
service, environmental impact), usage (heavy, moderate, light, non-user,
ex-user, potential user, first-time user), loyalty (not loyal, somewhat
loyal, completely loyal)
ENCS 692 Communication for Innovation
Combination:
geodemographic segmentation
l How consumers describe themselves using a
combination of geographic, demographic, and
lifestyle characteristics to segment a market.
l “Birds of a feather flock together.”
ENCS 692 Communication for Innovation
Combination Example:
geodemographic segmentation clusters
Cluster Urban Lower Middle (U4): Suburban Affluent (S1): Suburban Affluent (S1):
Name Urban Bohemia Suburban Affluence Asian Heights
Description From body piercing to This cluster with a flair for fine Asian ancestries combined with
tattoos, Urban Bohemia living represents both old and hard work and growing wealth
includes a diverse population new wealth. Because wealth create and mould these upscale
by design. A neighbourhood accumulates throughout life neighbourhoods. Asian Heights
with a youthful skew, this stages, this cluster exhibits an represents the affirmation of
cluster occupies itself in older skew with many empty dreams cultivated through
a variety of artistic, retail, nests. Suburban Affluence generations of immigrants and
and generally creative indexes high on managerial often through hardship. These
employment. Men and and technical employment families boost local economies
women employed in cultural, and are married with children. as well as family prospects.
artistic, and entertainmentrelated Asian Heights indexes high
jobs abound. on Chinese, Korean, and
Household maintainers under Japanese immigration as well
age 25, many with college as households of six or more
degrees, are also persons.
Average $46,000 $166,000 $96,000
Household
Income
ENCS 692 Communication for Innovation