What is Market Segmentation?

Market Segmentation

Dividing a market into smaller groups with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.

Segmenting Consumer Markets

There is no single way to segment a market. A marketer has to try different segmentation variable, alone and in combination, to find the best way to view the market structure. Here we look at the major geographic, demographic, psychographic, and behavioral variables.

1. Geographic Segmentation

 

Dividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods

 

2. Demographic Segmentation

Dividing a market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.

 

i. Age and Life-Cycle Segmentation

Dividing a market into different age and life-cycle groups

 

ii. Gender Segmentation

Dividing a market into different groups based gender

 

iii. Income Segmentation

Dividing a market into different income groups

 

3. Psychographic Segmentation

Dividing a market into different groups based on social class, lifestyle, or personality characteristics 

4. Behavioral Segmentation

Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product

i. Occasion Segmentation

Dividing a market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Benefit Segmentation

Dividing a market into groups according to the different benefits that consumers seek from the product