Market Segmentation

Market Segmentation

1. Market Segment

   • Sub-group of consumers with similar characteristics

2. Market Segmentation

   • Division of the market into distinct gropus of consumers
     • To meet their desired need and wants

3. Markets are segmented into:

   • Demographic segmentation
     • Characteristics of the human population
       • Age
       • Gender
       • Religion
       • Ethnicity
   • Geographic segmentation
     • Geographical sectors
       • Factor to consider
         • Climate
         • Areas
   • Psychographic segmentation
     • People's lifestyle choices and personality characteristics
       • Social and economic statues
       • Values
   • Behavioral segmentation
     • How people act in relation to a product

4. After segmenting market, businesses decide their target market

   • Target market
     • Group of consumers with common needs and wants
   • Targeting
     • Process of marketing to a specific market segment
       • Either
         • Mass market
           • Large market, avoids specific segments
         • Niche market
           • Small segment of a market

5. Consumer Profiles

   • Consumer's characteristics
     • Mainly of a particular product in different markets
       • Age
       • Gender
       • Social statues
       • Income levels