2. MARKET SEGMENTATION
Market segmentation is the process of dividing a
market of potential customers into groups, or
segments, based on different characteristics. The
segments created are composed of consumers who
will respond similarly to marketing strategies and
who share traits such as similar interests, needs, or
locations.
3. IMPORTANCE OF MARKET
SEGMENTATION
Companies will not survive if the marketing strategy is
dependent upon targeting an entire mass market. The
importance of market segmentation is that it allows a
business to precisely reach a consumer with specific
needs and wants. In the long run, this benefits the
company because they are able to use their corporate
resources more effectively and make better strategic
marketing decisions.
5. DEMOGRAHIC
Demographic segmentation divides the markets into
groups based on variables such as age, gender, family
size, income, occupation, education, religion, race and
nationality. Demographic factors are the most popular
bases for segmenting the consumer group. One reason is
that consumer needs, wants, and usage rates often vary
closely with the demographic variables. Moreover,
demographic factors are easier to measure than most
other type of variables.
6. GEOGRAPHIC
Geographic segmentation refers to dividing
a market into different geographical units
such as nations, states, regions, cities, or
neighborhoods. For example, national
newspapers are published and distributed to
different cities in different languages to cater
to the needs of the consumers.
7. PSYCHOGRAPHIC
Psychographic segmentation pertains to
lifestyle and personality traits. In the case of
certain products, buying behaviour
predominantly depends on lifestyle and
personality characteristics
8. BEHAVIORGRAPHIC
In behaviorgraphic segmentation, buyers are
divided into groups on the basis of their
knowledge of, attitude towards, use of, or
response to a product. Behaviorgraphic
segmentation includes segmentation on the basis
of occasions, user status, usage rate loyalty status,
buyer-readiness stage and attitude.