It is the manner in which people live and spend their time and money. A need for an entrepreneur might be a luxury for a government sector employee. So, market segmentation is beneficial for the companies serving larger markets. This information can then be used to "clone" these customers by reaching out to non-customers who share similar traits and characteristics.
Psychographic classification may, however, be an oversimplification of consumer personalities and purchase behaviour. In an undifferentiated approach, the marketer ignores segmentation and develops a product that meets the needs of the largest number of buyers.
People can be labelled as The basis of market segmentation loyal, brand-neutral, or competitor loyal. You may also check out marketing goals examples 4.
Both men and women have different interests and preferences, and thus the need for segmentation. People can be labeled as brand loyal, brand-neutral, or competitor loyal. However, benefits sought are quite an important and commonly used segmentation approach in real business practice and should be separated out.
Those who do not use due to ignorance may be provided extensive information. Hence, by segmenting the market according to the target age group, marketers create better marketing and communication strategies and get better conversion rates. What are the main ways of segmenting a market?
But, do you know the secret? There are many reasons as to why market segmentation is done. A user can be labelled as heavy, medium or light user of a product.
Sugar also comes in many different types - cane sugar, beet sugar, raw sugar, white refined sugar, brown sugar, caster sugar, sugar lumps, icing sugar also known as milled sugarsugar syrup, invert sugar and a plethora of sugar substitutes including smart sugar which is essentially a blend of pure sugar and a sugar substitute.
It is believed that the knowledge of the product and its use affects the buying decision of an individual. Each market segment is identified by the major benefits it is seeking.
A person living in mountains will have less or no demand for ice cream than the person living in a desert. The non-users may consist of two types of people— those who do not use the product and those who might use it. Demographic segmentation Segmenting based on identifiable population characteristics, such as age, occupation, marital status and so on.
The segmentation of consumer markets requires the creation of sub-groups from a larger population to more specifically target them. It helps the firm expand the product usage. This group is concerned with self-concept, e.
These bases range from age, gender, etc. Benefit segmentation This approach segments consumers on the basis of specific benefits they are seeking from the product, such as convenience, or status, or value, and so on.
This group looks for benefits such as economy, value, durability and other logical factors. This group prefers popular brands and large successful companies. You may also like Types of Market Segmentation Geographic Segmentation Geographic segmentation divides the market on the basis of geography.
Extensive data is now available to support segmentation at very narrow groups or even for the single customer, allowing marketers to devise a customised offer with an individual price which can be disseminated via real-time communications.
But in spite of its limitations, market segmentation remains one of the enduring concepts in marketing and continues to be widely used in practice. Basically, segmentation is all about identifying specific groups of people based on common characteristics.The segmentation of consumer markets requires the creation of sub-groups from a larger population to more specifically target them.
There are virtually dozens of ways that a market might be. Market segmentation can be defined as the process of dividing a market into different homogeneous groups of consumers.
Market consists of buyers and buyers vary from each other in different ways. Variation depends upon different factors like wants, resources. Market Segmentation is a process of dividing the market of potential customers into different groups and segments on the basis of certain characteristics.
The member of these groups share similar characteristics and usually have one or more than one aspect common among them. Market segmentation is the activity of dividing a broad consumer or business market, Psychographics is a very widely used basis for segmentation, because it enables marketers to identify tightly defined market segments and better understand consumer motivations for product or brand choice.
For example, airlines having ‘Frequent Flyer’ are using user rate as the basis of market segmentation. Generally, marketers are interested in the heavy user group. But marketers should pay attention to all the user groups because they represent different opportunities.
Understanding market segmentation bases/variables Probably the best approach to understanding the different segmentation bases is to view some examples, which are listed in the table below.
It is important to note that sometimes textbooks classify the lower-level bases/variables slightly differently.Download