The document explains micro-marketing segmentation, focusing on how it targets small groups of consumers based on specific characteristics like geography, demographics, and psychographics. It details three types of segmentation: geographic (based on location), demographic (based on population variables like age and income), and psychographic (based on lifestyle and interests). The goal is to effectively categorize and market to distinct consumer segments to meet their needs better.

1. E-Commerce
Explain the micro-marketing segmentation
and give specific example of geographic, demographic and
psychographic segmentation.
Submitted By
Mohammad Tawhidur Rahman
Bangladesh
Date of Submission:
20 October, 2015

2. Mohammad Tawhidur Rahman P-2
Question # 4 : Explain the micro-marketing segmentation and give
specific example of geographic, demographic and
psychographic segmentation.
Answer # 4 :
Micro-marketing is a marketing strategy in which advertising efforts are focused on a
small group of highly-targeted consumers. Micro-marketing requires a company to
narrowly define particular consumers by a particular characteristic, such as ZIP code or
job title, and tailor campaigns for that particular segment. It can be a more expensive
technique due to customization and lack of an economy of scale.
The process of defining and subdividing a large homogenous market into clearly
identifiable segments having similar needs, wants or demand characteristics.
Few companies are big enough to supply the needs of an entire market; most
must breakdown the total demand into segments and choose those that the company is best
equipped to handle.
Four basic factors that affect market segmentation are-
 Clear identification of the segment,
 Measurability of its effective size,
 Its accessibility through promotional efforts, and
 Its appropriateness to the policies and resources of the company.
The four basic market segmentation-strategies are based on-
1. Geographical,
2. Demographic,
3. Psychographic and
4. Behavioral differences.
The goal of market segmentation is to separate the general market into categories, which
can then be targeted and marketed to most effectively. There are three general types of
market segmentation:
1. Geographic segmentation – This type of market segmentation divides people on the
basis of geography. Potential customers will have different needs based on the geography
they are located in. For example people who are located in non municipal areas might
require a RO water purifier whereas those located in municipal areas might need UV
based purifiers. Thus, the need can vary on the basis of geography.
Similarly in cold countries, the same company might be marketing for heaters where as in
hot countries, the same company might be targeting air conditioners. Thus, many
companies use geographic segmentation as a basis for market segmentation. This type of
segmentation is the easiest but it was actually used in the last decade where the industries
were new and the reach was less. Today, the reach is high but still geographic
segmentation principles are used when you are expanding the business in more local areas
as well as international territories.
2. Demographic segmentation – It is one of the simplest and widest types of market
segmentation used. Most companies use it to get the right population in using their
products. Segmentation generally divides a population based on variables. Thus
demographic segmentation too has its own variables such as Age, gender, family size,

3. Mohammad Tawhidur Rahman P-3
income, occupation, religion, race and nationality. To read more, click on this link
for demographic segmentation.
Demographic segmentation can be seen applied in the automobile market. The automobile
market has different price brackets in which automobiles are manufactured. For example-
Maruti has the low price bracket and therefore manufactures people driven cars. Audi and
BMW have the high price bracket so it targets high end buyers. Thus in this case, the
segmentation is being done on the basis on earnings which is a part of demography.
Similarly, Age, life cycle stages, gender, income etc can be used for demographic type of
market segmentation.
3. Psychographic segmentation– It is one which uses peoples lifestyle, their activities,
interests as well as opinions to define a market segment. Psychographic segmentation is
quite similar to behavioral segmentation. But psychographic segmentation also takes the
psychological aspects of consumer buying behavior into accounts. These psychological
aspects may be consumers lifestyle, his social standing as well as his AIO. Do refer more
to Activities, interests and opinions.
Application of psychographic segmentation can be seen all across nowadays. For example
– Zara markets itself on the basis of lifestyle, where customers who want the latest and
differential clothing can visit the Zara stores. Similarly Arrow markets itself to the
premium office lifestyle where probably your bosses and super bosses shop for the sharp
clothing. Thus, this type of segmentation is mainly based on lifestyle or AIO.
If you’re a critical thinker like me, you may be wondering about those people who fall in
between, or are made up of a combination of, those segments. My experience on Pandora
is a great example. Am I the Chevy or Mercedes demographic? Although market
segmentation isn’t a perfect science, it will certainly get you closer to understanding your
target audience and increasing your marketing return on investment.
-THANK YOU-