segmentation and its types

1. Segmentation
By: Mr. Sandeep
Jashwant

2. What is Segmentation
• Segmentation means to divide the
marketplace into parts, or segments, which
are definable, accessible, actionable, and
profitable and have a growth potential. In
other words, a company would find it
impossible to target the entire market,
because of time, cost and effort restrictions. It
needs to have a ‘definable’ segment – a mass
of people who can be identified and targeted
with reasonable effort, cost and time.

3. Types of Segmentation
There are 4 basic types of segmentation:
Demographic Market Segmentation
Psychographic Market Segmentation
Behavioral Market Segmentation
Geographic Market Segmentation

4. Demographic Segmentation
• Demographic segmentation is one of the most
popular and commonly used types of market
segmentation. It refers to statistical data
about a group of people.
some Examples are:
Age
Gender
Income
Location
Family Situation
Annual Income
Education
Ethnicity

5. Psychographic Market Segmentation
Psychographic Segmentation categorizes audiences and customers
by factors that relate to their personalities and characteristics.
Their Examples are:
Personality traits
Values
Attitudes
Interests
Lifestyles
Psychological influences
Subconscious and conscious beliefs
Motivations
Priorities

6. Behavioral Segmentation
While demographic and psychographics segmentation
focus on who a customer is, behavioral segmentation
focuses on how the customer acts.
Its Examples are:
Purchasing habits
Spending habits
User status
Brand interactions

7. Geographic Market Segmentation
Geographic segmentation is the simplest type of
market segmentation. It categorizes customers
based on geographic borders.
Its Examples are:
City
Country
Radius around
a certain
location
Climate
Urban or rural