Abstract:

In this paper three topical ways of segmenting retail markets are discussed illustrating the principal advantages and unique insights afforded by each of them individually. By use of a matrix approach it will then be shown how they can be combined into a single easy-to-use tool that retains all the qualities of the measures individually, and adds a substantial depth of perspective. The first approach is the segmentation of markets by Lifestage or age group, and this paper will show how one’s lifespan can be divided into 5 year periods. In each of these periods peoples circumstances change, their interests and activities change, their buying behaviour and levels of consumer expenditure change. The second approach is the segmentation of markets by Lifeplane or socio-economic group, with Education being the key. This paper will show how buying behaviour, store choice and consumer expenditure levels are a function of Life Plane. The third approach is the use of Shopper Typologies to segment retail markets and this paper will show how different types of people react to retail and media offerings. In concluding the paper, it will be shown how a matrix approach may be used to combine all three measures.