Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.
Types of Market Segmentation Geographic Segmentation . While typically a subset of demographics, geographic segmentation is typically the easiest. Demographic Segmentation . Firmographic Segmentation . Behavioural Segmentation . Psychographic Segmentation .
Age . Age is the most basic variable of them all, albeit the most important because consumer preferences continually change with age . Almost all marketing campaigns target age -specific audiences.
The four bases of market segmentation are: Demographic segmentation . Psychographic segmentation . Behavioral segmentation . Geographic segmentation .
Market segments are known to respond somewhat predictably to a marketing strategy, plan, or promotion. For example , common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common examples of market segmentation include geographic, demographic, psychographic, and behavioral.
Segmentation is a common technique used by companies to narrow down a large target audience into more narrowly defined target groups. A number of strategies, including demographics, lifestyles and usage patterns are used to identify market segments.
Market Segmentation: 7 Bases for Market Segmentation | Marketing Management Geographic Segmentation: Demographic Segmentation: Psychographic Segmentation: Behavioristic Segmentation: Volume Segmentation: Product-space Segmentation: Benefit Segmentation:
The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. In the long run, this benefits the company because they are able to use their corporate resources more effectively and make better strategic marketing decisions.
What are the 5 Types of Market Segmentation? There are 5 ways to break down your customer profile into unique segments, including behavioral, psychographic , demographic , geographic , and firmographic!
A demographic segmentation strategy in which a product-market is grouped into segments based on the basis of age so that the organisation can more precisely target its offerings to the needs and wants of each stage of life of interest to it.
Most Common Demographics Examples Age. Gender . Race . Marital status. Number of children (if any) Occupation. Annual income. Education level.
Demographic segmentation groups customers and potential customers together by focusing on certain traits that might represent useful markets for a business. What are the 5 main different segments for demographics ? The five main demographic segments are age, gender, occupation, cultural background, and family status.
A common example of psychographic segmentation is a luxury mobile-manufacturing brand that specializes in customization. They can also evaluate the same variables for their competitor’s target market as well for the better selection of a market for their branding activities.
Market segmentation is the process of categorizing the market into different groups, according to demographic, geographic, behavioral and psychographic traits. The target market is the market segment that the business is focusing on for a specific product or marketing campaign.
Characteristics such as a customer’s age , gender , location, income , and occupation frequently correlate to behavioral data. That means behavioral data can often be used to confirm certain conclusions about other segmentation data.