[MUSIC] There are various methods of market segmentation. There's no one way of segmenting markets, but here are a few examples of approaches that have been used previously. A socio-economic classification, this is one way to segment the market, and this looks at the occupation of the head of the family. This is a little old fashioned, but it is a way that's been used of segmenting the market but may not necessarily be relevant in today's environment. Segment with regard to the change in structure of the family unit and the occupation therein. These are classified and some examples are A, upper middle class, these would be higher managerial positions, administrative or professional. B, middle class, more intermediate managerial positions, once again administrative or professional. C1, lower middle class, is simply supervisory, or clerical, maybe slightly junior. But once again, in an administrative or professional background. C2, skilled working class, this is skilled manual workers, manual labor. D, working class, semi skilled worker. And E, those of the lowest level of subsistence. Classically, these would have been state pensioners or widows with no other earner. Casual, low grade workers. It's worth noting that customers may stay in the same social class all of their lives, but on the other hand they can move across market segments and social classes. And thus, spend their money differently over periods of time. An example would be bank accounts for students. Initially produces no real income for the banks, but in subsequent years the banks can offer them new products such as mortgages, investments, etc. Weller and Grubar's life cycle stages, another model. This model emphasizes the marital status and having children. There's the bachelor, young single people, not living with parents. The newly married, married couples with no children, dinkies if you wish, jewel income, no kids. Full nest I, married couples where the youngest child is under six, and full nest II, married couples where the child is six or over. Full Nest III is older married couples with dependent children still living at home. There's Empty Nest I, no children living at home, the family head is at work, and empty nest II where the family head is retired. These can be classified as a solitary survivor, which is in work or a solitary survivor who is retired. Once again, this method may not be fully applicable in today's social environment. It does assume that the retired persons are left with no money, but in fact, 80% of the UK's wealth is held by people over 55. And these who have retired early are still in good health. There are some other bases of segmenting the market. Basic customer characteristics for instance, their demographic, age, sex, socioeconomic, job, income, their location, personality, motives, and lifestyle. Product related behavior, purchase location, getting your product or service to a particular segment and a particular market. The benefits sought by the consumer, and the consumption behavior and status, all leads toward an attitude towards products and services. [MUSIC]
