W 2: Splitting The Market - Market Segmentation

For more information about how hot-air balloons are marketed and the way the market is split, you may want to look at the explanation of marketing. This worksheet looks at how the market for balloons is split. For some detail about market segmentation you could also look at the marketing theories section.

A printable version of this worksheet is available for filling in answers.

Step 1 - Which bit is which?

The marketing theories section has details of some ways that firms can split the market they are dealing in. They were:

• Demographically - according to the age structure of the population
• Geographically - by country or region or area
• Behaviouristically - according to the nature of the purchase, the use the product is put to, the loyalty to the brand and so on
• Benefit - according to the use and satisfaction gained by the consumer
• Socio-economically - according to social class and income levels

Rank these according to which you think will be the most important to Cameron Balloons. Rank them from the most important down to the least important.

Why do you think that the one you have put first is the most important?

Why do you think that the one you have put last is the least important?

Step 2 - Who uses their balloons for what?

Having decided the most important way to split their market, we can now start to look at the different segments within that market. For example, if we look at the different reasons why people buy balloons and the different uses they put them to (the behaviourist criteria), this should help us to develop the most appropriate strategy to sell more balloons to each group.

Go to the marketing explanation section and make a list of all the different market segments or groups that you can find there.

To help us analyse this further we could show these different groups graphically using a market segmentation map. If you want more information on these, why not look at the marketing theories section.

On the blank segmentation map below, try to fill in the different groups of balloon customers that you have just identified:

	Flying
Amateur		Professional
	Sponsorship

Step 3 - So how do we use this?

Now, having split the market we need to use the information to develop a marketing strategy. For each of the groups you have identified above, write some suggestions to help Cameron Balloons market their products to each of these groups.