Professional Studies for Screen-Based Media
Foundation Degree South West
Market Segmentation

Levels of market segmentation


Mass markets
When consumers are sufficiently alike in their wants, then a company can decide to have a homogenous approach to target the whole market with one particular product or service. However, today it is very difficult to think of many products that are marketed this way considering consumers' proliferating needs.

Segment markets
A market segment is a large identifiable group of consumers that differ in their needs, perceptions and buying behaviour from other population groups. When companies segment the market into identifiable groups they adapt their offers to meet the wants of one or more segments.

Niche markets
Niche markets are sub groups within segments. Niches are narrowly defined segments that are usually identified as a result of dividing a segment into sub-segments. For example the short-stay holiday market can be further divided into 18-30s, couples, young families or over 50s niche markets. Opting for this type of segmentation could allow a smaller market player to concentrate its limited resources on a smaller, yet clearly defined segment that could be overlooked by larger competitors. Some players in the market like Bournemouth International airport want to explore niche markets in the future.

Spencer Brace, Sales & Marketing Manager, Bournemouth International Airport.