Segmenting Consumer Markets

There is no solitary way to segment a market. A marketer must try different segmentation variables, alone and in combination, to discover the best way to view the market structure. The major variables that may be used in segmenting are major demographic, psychographics, geographic, and behavioural variables.

a)  Geographic Segmentation

Geographic segmentation intended for dividing the market into different geographical units like regions, nations, states, cities, counties, or neighbourhoods. A company can decide to operate in one or a few geographical areas, or to operate in all of areas but pay notice to geographical differences in wants and needs. It is general to, advertising; localize products promotions, and sales attempt to fit the needs of geographical areas (cities, regions and even neighbourhoods).

b)  Demographic Segmentation

Demographic segmentation divides the market into groups depend on variables like age, , family size, gender ,  income, family life cycle , education, occupation, religion, race, and nationality. Demographic factors are the most admired bases for segmenting customer groups. One cause is that  consumer  wants,  needs and  usage  rates  frequently  vary  closely  with  demographic  variables. Another reason is that demographic variables are simpler to measure than most of other types of variables. Even when market segments are first defined by using other bases, like benefits sought or behaviour, their demographic characteristics have to be known to assess the size of the target market and to attain it efficiently. Demographic variables are simpler to measure than most of other types of variables.

I.   Age and Life-Cycle Stage

Age and life cycle segmentation contains offering different type of products or by using different marketing scheme for different age and life-cycle groups. Marketers have to guard against stereotypes when by using this form of segmentation. Whereas certain age and life cycle groups do behave same manner, age is frequently a poor predictor of a person's life cycle, work or family status, health needs, and buying power. Consumer wants and needs change with age. Some companies utilize age and life cycle segmentation, by offering different products or by using different marketing scheme for different age and life-cycle groups.

II.   Gender segmentation

Calls for dividing a market into different groups depend on sex. This segmentation form has long been utilized for, cosmetics, clothing, magazines and toiletries. New opportunities in this area are emerging like, deodorants, automobiles and financial services. There is an enlarged emphasis on marketing and advertising to women. Specialized Web sites are becoming very admired with this group.

 III.   Income segmentation

It contain of dividing a market into different income groups. Marketers for, boats, automobiles, clothing, financial services, cosmetics and travel have long used this form of segmentation. By using this form, marketers have to remember that they do not always have to target the affluent.  Other income groups are also viable and profitable market segments.

c)  Psychographics segmentation

It calls  for dividing a market into different groups depend on lifestyle, community class, or personality characteristics. People in the similar demographic class may exhibit very different psychographics characteristics. As earlier seen in, lifestyle also affects people's interest in many goods, and the goods they buy express those lifestyles.  This technique of segmentation is achieving in popularity.  Personality variables may also be utilized to segment markets.   Marketers will provide their products personalities that correspond to consumer personalities.

d)  Behavioural segmentation

It involves dividing a market into groups depends on attitudes, consumer knowledge, uses, or responses to a product. Various marketers believe that behaviour variables are the best beginning point for building market segments. Occasion segmentation contains of dividing the market into groups according to occasions when buyers acquire the idea to buy, actually make their purchase, or utilized the purchased item. Benefit segmentation involves dividing the market into groups according to the different reimbursement the consumers seek from the product. Companies may use benefit segmentation to explain the benefit segment to which they are appealing, its characteristics, and the main competing brands. They may also search for new benefits and establish brands that deliver them. User status can also be used to divide the market.   Segments of ex-users, nonusers, first-time users, potential users, and regular users of a product are potential ways to segment. Usage rates are another way that marketers segment markets.  These categories may be medium, light and heavy user groups. Loyalty status may also be used to segment markets.  Consumers may be loyal to stores, brands and companies. Consumers may be totally loyal, somewhat loyal, or not loyal at all. An astonishing amount of information may be uncovered by studying loyalty patterns.

Today there is a trend toward targeting multiple segments.   Very frequently, companies start their marketing with one targeted segment, and then enlarge into other segments. This frequently boosts a company's competitive advantage and knowledge of the customer base.     In multivariable segmentation, one of most promising developments is "geodemographic" segmentation based upon geographic and demographic variables both.