As stated by Finch (2012) market segmentation describes both a process and strategy by which the total market for a product is divided into smaller parts or segments (p. 158). There are four levels of marketing segmentation as described by Finch(2012) which are mass marketing, segment marketing, niche marketing, and customized marketing (p. 162). Mass marketing: Finch (2012) states that the seller does not differentiate between prospective buyers at all (p. 162). This is a marketing attempt to appeal to an entire market with on basic marketing strategy using mass marketing. Example would be fast food chain offering the same hamburger promotion at all its franchises to create demand for the product. Segment Marketing: Or differentiated marketing, as stated by Finch (2012), is a term used to describe marketing strategies that differentiate between customer groups within a product market.
Defining your customers needs and wants so you can direct your marketing to the groups to make larger impact is the concept behind segment marketing. Niche marketing: Niche marketing as stated by Finch (2012), allows the organization to create more narrowly focused marketing plans for its brands than segment marketing approaches (p. 163). Customized marketing: As stated by Finch (2012) customized marketing is the most extreme level of market segmentation that treats each prospective buyer as a separate segment. It is used more in the business to business market.
You need to know who you are marketing to. In the case we are marketing to Gen Y and the baby boomers. Baby boomers, those born in the years 1946-1964, are roughly 80 million strong according to Perklin (1999). And Gen Y is around 63 million, those being born in the years 1985-1991 according to Mary (2009). In segment marketing strategies for baby boomers newspapers ads that are simply can be used. 55 percent of younger boomers and 64 percent of older boomers read a daily newspaper per Trends for 2008 (2007). Gen Y be marketing by way of websites. Generation Y uses the Internet for much of their information and entertainment as opposed to TV, radio, newspapers, and magazines Mary (2009).
I recently did a paper on Procter and Gamble products or P&G. They have multiple laundry soaps, hand and body soaps, skin care lines and many other products with multiple lines. Each product is marketed to a different target market. The products compete against each other even. But P&G target a wider market by providing differences. I think they have done a great job marketing across generations.
Finch, J. (2012). Managerial Marketing. San Diego: Bridgepoint Education, Inc. Mary, M. A. (2009). MARKETING TO generation Y: MESSAGES THAT GET THEIR ATTENTION. LIMRA’s MarketFacts Quarterly, 28(1), 16-21,3. Retrieved from http://search.proquest.com/docview/208133449?accountid=32521 Perlik, A. (1999). Target marketing: Aiming at baby boomers. Security Distributing & Marketing, 29(3), 79-82. Retrieved from proquest.com Trend for 2008: Effectively marketing to baby boomers and beyond. (2007). The Enterprise, 37(27), 1-1. Retrieved from http://search.proquest.com/docview/229183463?accountid=32521