MKTG5001 Chap.2 Segmentation, Targeting & the Customer Profile
Segmentation, Targeting & the Customer Profile
Segmentation, Targeting & the Customer Profile is about not trying to be all things to all people. Segmentation groups customers who value similar things to each other but differently from other groups, using four bases — geographic, demographic, psychographic and behavioural — with value-based segmentation flagged as the most effective. The family life cycle shows how needs shift across life stages.
After choosing a target segment you build a customer profile or empathy map to understand it deeply.
What this chapter covers
- 01
Segmentation = grouping customers by shared value (can't be all things to all people)
- 02
The four bases: geographic, demographic, psychographic, behavioural
- 03
Behavioural segmentation: usage, loyalty, occasion, benefits sought
- 04
Value-based segmentation as the most effective approach
- 05
Family life cycle stages and how they shift the value forms prioritised
- 06
Targeting a segment, then building a customer profile / empathy map
Choose a segmentation base and build a target profile
- 3 marksCompare the bases briefly. Geographic (city/climate) and demographic (age/income) are easy but blunt; psychographic (active, health-conscious lifestyle) and behavioural (works out 3+ times a week, seeks convenience) describe why people would buy. For a fitness app, behavioural + psychographic value-based segmentation is most useful because it groups people by the benefit they seek.
- 2 marksName a target segment. 'Time-poor professionals who already exercise occasionally and want guided 20-minute home workouts' — a value-based segment defined by benefit sought (convenient, short, structured exercise).
- 1 markOutline the customer profile / empathy map. Capture their goals (stay fit despite a busy schedule), pains (no time, gym intimidation), gains (visible progress, flexibility), and behaviour (exercises early mornings, on a phone) so the offer and message can be tuned to them.
Key terms
- Market segmentation
- Dividing a broad market into groups of customers who value similar things as each other but differently from other groups, so the firm can focus rather than try to serve everyone.
- Four segmentation bases
- Geographic (where customers are), demographic (who they are — age, income, family), psychographic (values, lifestyle, personality) and behavioural (usage, loyalty, occasion, benefits sought).
- Value-based segmentation
- Grouping customers by the value or benefit they seek; the course's most-effective approach because it links the segment directly to the value proposition.
- Family life cycle
- A sequence of life stages (bachelor, newly married, full nest, empty nest, solitary survivor) that shapes lifestyle, spending and which forms of value a household prioritises.
- Customer profile / empathy map
- A detailed description of a chosen target segment — its goals, pains, gains and behaviour — built after targeting to guide the marketing mix.
Segmentation, Targeting & the Customer Profile FAQ
What are the four bases of segmentation?
Geographic, demographic, psychographic and behavioural. Geographic and demographic say where and who; psychographic and behavioural say why people buy. The course highlights value-based (behavioural) segmentation as the most effective because it ties the group to the benefit sought.
What's the difference between segmentation and targeting?
Segmentation is dividing the market into value-based groups; targeting is choosing which one (or few) of those groups to serve. Targeting comes after segmenting, and is followed by building a customer profile or empathy map of the chosen segment.
Exam move
Be able to list the four bases and, more importantly, pick and justify the best one for a given product. Practise turning a chosen segment into a short customer-profile sketch (goals, pains, gains, behaviour).
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