Methods of segmentation:

Each market segment has its own unique requirement because it is homogeneous. Hence it needs a different mix of the marketing resources. Market segments vary from one market to another in the following ways: -

• Age: People in different age groups use different fashions, styles of clothes, etc. The marketing strategy for one age group ( a segment) will be different from that of the other age groups.
• Population: This includes the size of the total population is considered together with age, sex, family lifestyle and family life cycle. These are useful factors for market segmentation to consider. The marketers must consider these factors before they make their decisions on advertising, distribution of products, market research, and other marketing activities in each market segment.
• Grouping: It is essential for the marketers to know the various groups making up their markets. Religious, cultural, racial and social groups must be identified. Nationalities, education, occupations, personality, attitudes, and product benefits which are desired must be considered by the marketers.

The grouping is useful for firms which sell products such as clothes, shoes, cars, toys for babies, etc. Each group can form a distinct market segment within a region or a country.

• Income: The size of disposable income (net income after deductions) is important for the marketers who have to determine the quality and quantity of the products to be marketed, and how many lines or models that their companies should market. The question of money to spend is answered by the size of the income.