Market segmentation is an important aspect of marketing (Blocker & Flint, 2007). Producers need to determine the needs of their consumers at a certain time to make the most appropriate marketing choices. This is the basis of segmentation (Kotler & Armstrong, 2014). Researchers involved in segmentation seek out shared characteristics between members of a common geographic area (usually demarcated with a zip code) which include common needs, common interests and similar lifestyles (Kotler & Armstrong, 2014). Acquiring the information marks the implementation of effective marketing strategies (Kotler & Armstrong, 2014).

Question 1

            The chosen zip code (71115) demarcates Shreveport, Los Angles. The segmentation system chosen is the P$YCLE segmentation system. According to the website, this particular type of segmentation deals with the customer financial and investment behavior over the specified period. The P$YCLE segmentation system is preferable because it deals with the most important factor of marketing, that is financial resources (Kotler & Armstrong, 2014).

By analyzing the ways people in a specified geographic area utilize their funds, a company may be able to gauge likeliness of the populous to buy their product (Blocker & Flint, 2007). This, in turn, creates room for intensive marketing strategies that consider the above factors. Such may include, bulk produce, brand changing and product improvement (Blocker & Flint, 2007). The P$YCLE segmentation system allows critical financial analysis (Kotler & Armstrong, 2014). For a company to target a specified class of people within a specified population, one needs to be sure that the population is willing to purchase that product (Kotler & Armstrong, 2014).


The top five segments for this system according to the claritas website include

Power Couples

Power couples are characterized by their high social statuses. The carder are identified with middle to old ages and most of them in their retirement stages. The Claritas website goes on to explain that they are mainly identified with stock exchanges and mutual retirement funds. The group invest their funds in estate planners and asset managers. They have older children.

Old Homesteaders

Old homesteaders have one of the highest concentration of residents in the nation. They are elderly citizens with extremely low incomes. Most of them are depend on social security checks for upkeep. They have the highest life assurance valued under $20,000 dollars and homeowner insurance, which is, valued under $20,000. They have mature offspring.

New Nests

The new nest’s segmentation comprises of young upcoming families. The group do not yet have substantial assets as they are still in their initial stages starting out their independent lives. They are submerged with modern technology employing the use of a great deal of them such as the internet. They engage in youth related programs and watch media programs that are strongly attributed to the youth; they also listen to age appropriate music.

City Strivers

The category consists of younger apartment dwellers. They are characterized with middle scale incomes. Long-term investment and retirement savings characterize few. Common activities include going to the movies or dancing.



Young Urban Renters

Young urban renters are just starting out life. The majority are still paying off their student loans. Limited financial resources characterize them and are just beginning to explore into the auto, medical and renter’s coverage.

Question 2

            This section deals about relating with the different segments of that segmentation system.

Part A

The segments I share characteristics with are the last two segments, that is, City Strivers and Young Urban Renters. The course may be attributed to the fact that the groups represent learners’ fresh out of school who are just stepping into the corporate world (Kotler & Armstrong, 2014). The characteristics shared include interest in youth activities such as going to the movies, investing in medical insurance and the earning of middle scale incomes. Another characteristic that is strongly shared include the act of paying off student loans and personal loans.

Part B

The segments that fit me best, as stated above, are the last two segments. They characterize the time one is just entering into the life of independence. Some youth related activities are rampant in the two segments while long-term investment is little if any. The segment that fits me directly, however, is the Young Urban renters. This is because it represents the people who are just stepping foot into the corporate world. It represents people who have stepped out of school fresh minded and determined to change the world (Kotler & Armstrong, 2014). It is also characterized by some youth-related activities such as going to the movies, going roller-skating and hikes. Another factor that makes me well suited to this segment is the amount of limited financial resources they are characterized with. I currently earn a middle scale income that is sufficient for all of my needs. All these are reasons why I believe that I fit into the last segment, that is, Young Urban Renters

Question 3

The area is characterized by a large number of youths who are just entering into the corporate world. A business that would strive in this population is that which targets the youth. A beverage distribution center is the most appropriate business venture if one is aiming to target the area demarcated by the zip code. Youths can be found in various clusters or groups in the establishments. They visit them during free times as a venue for meeting with friends or discussion centers. They are also great places for grabbing a cup of coffee before rushing off to work. Fast food also suffices but target a lower population since some individuals tend to eat healthily. A beverage distribution center is characterized by a large number of youth but it’s open to all age groups.

This shows that a company that is involved in drinks distribution such as Starbucks is likely to gain huge returns after investing in this area with the particular zip code. Corporates with highly demanding jobs can pass at the stores for a quick cup of coffee before rushing to work. Another factor that makes this a good investment is that the beverage distribution is not limited to a certain age group, smaller children and also middle-aged adults in their forties to early fifties may also visit them, this makes it a worthwhile investment. Areas characterized by large numbers of youth, can favor the establishment of shopping malls, which house all youth attractions (Blocker & Flint, 2007).

            Conclusively Marketing Segmentation is imperative in the overall process of marketing. It involves identifying areas where products are likely to have a large market value. The undertaking reduces the risk of lack of ready market


Blocker, C. P. and Flint, D. J., (2007). “Customer Segments as Moving Targets: Integrating Customer Value Dynamism into Segment Instability Logic,” Industrial Market Management, vol. 36.

Philip Kotler and Gary Armstrong (2014) Principles of Marketing, Pearson.

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