Market Segmentation

Market Segmentation

1. Dividing a market into smaller segments with distinct needs, characyteristics, or behavior that might require separate marketing strategies or mixes.

   • Geographic segmentation
     • Dividing a market into different geographical units, such as nations, states, regions, countries, cities, or even neighbothoods.
   • Demographic segmentation
     • Dividing the market into segments based on variables such us age, gender, family, size, family life cycle, income, occupation, education, religion, race, generation, and nacionality.
       • Age and life-cycle segmentation: dividing the market into different age and life-cycle groups. Customers needs, wants and demands change with age.
       • Gender Segmentation: Dividing a market into different segments based on gender.
       • Income segmentation: Dividing a market into different income segments.
   • Psychographic Segmentation
     • Dividing the market into different segments based on social class, lifestyle, or personality characteristics.
       • Marketeers also use personality variables to segment markets.
   • Behavioral Segmentation
     • Divides buyers into segments based on their knowlegde, attitudes, uses, or responses to a product
     • occasions: Buyers can be grouped according to occasions
     • Occasions: Buyers can be grouped according to occasions when they get the idea to buy, actualyy make their puchase, or use the purchased itme.
       • Benefit Sought: A powerful form of segmentation is grouping buyers according to the different benefits that they seek from a product.
         • User Status: Markets can be segmented into nounusers, ex-users, potential users, first- time users, and regular usaers of a product.
           • Usage rate: Markets can also be segmented into light, medium, and heavy product users.
             • Loyalty Status: A market can also be segmented by consumer loyalty
     • Effective segmentaton
       • Measurable: The size, purchasing power, and profiles of the segments can be messured. Certain segmentation variables are difficult to mesure.
       • Accesible: The market segments can be effectively reached and served.
       • Actionable: Effectibe programs can be designed for attracting and serving the segments.

2. Targeting: the process of evaluating each market segments's attractiveness and selecting one or more segments to enter,

3. Differentiation: differentiating the market offering to create superior customer value.

4. Positioning: arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds to target consumers.

5. Intermarket segmentation (cross-market segmentation)

   • Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.