Market Segmentation

Market segmentation is the process of classifying or subdividing the market or the customers who are having similar characteristics. Classifying the group of customers who are having similar characteristics based on the various factors mentioned below. The following can be the types of market segmentation done using the different factors.

• Demographic segmentation
• Geographic segmentation
• Psychographic segmentation
• Behavioral segmentation

Demographic segmentation

Demographic segmentation involved segmenting or classifying or grouping the customers or market based on demographic factors. Demographic factors consist of age, Education, gender, occupation, income Etcetera. ETC.

Example

1. Demographic segmentation based on age for the product mobile phone
2. Age from 20 to 40
3. Age from 40 to 60
4. Age 60 and above

Above are the three segments or subdivisions of the market made based on three different age categories. Targeting is the process or marketing strategy through which the organization can choose the potential segment which will be the group of customers that can be attracted towards buying our product.

• Demographic segmentation done based on education as follows
• Education up to HSC
• Education up to Graduation
• Education more than Graduation
• Uneducated

From the above segments of the customers based on the factor of education, we will come to know that one factor is different than others that are uneducated. Rest three segments belong to educated customers but are less and highly educated. The business organization always focuses on targeting the segments which can be the potential customers for the business they need to apply different perspectives and dimensions to analyze the segment which will be the potential segment.

        For the product mobile phone the educated segments Can be the potential segments for the business so the organization applied the marketing strategy for them as per the requirement or to convert them towards buying our product.

Geographic Segmentation

Geographical segmentation is the segmenting of the market based on geographical factors which are mentioned as follows.

• The region such as North India South India Asia Europe Australia rural-urban etcetera
• Size of the metropolitan area The market is segmented according to the size of the population in that specific area
• Population density is used to classify the market as urban suburban or rural

The climate is used to segment the market based on weather patterns that may be common to certain geographical regions. For example in North India Himachal Pradesh Shimla or in Switzerland temperature is low considering that perspective components to apply the marketing strategy for their customers belongs to these places stop

Example

• Subdividing the markets or the segmenting of the customers based on regions of north India and South India. Demand for white cloth is more in South India whereas demand for white cloth is less in North India.
• Following are some of the segments made based on the geographical factors

Based on population size

               Rural

               Urban

Based on State or continent

               Asia

               Europe

               America  

Above all the cast classification of the customers or subdivision of the market based on the geographical factors. In the past segmentation, we have seen rural and urban two segments. In these two segments, the size of the population plays a very important role in separating the rural and urban areas. The urban area has more population than the rural area and from that perspective, the company applies its marketing strategy.

Whereas in the second Geographical segmentation, we will observe that based on the continent three segments are made Asia Europe, and America. The business organization observed similar characteristics and people Asian customers, European customers, and American customers. Based on the similar characteristics of these customers the company applied the marketing strategy or target the potential segments where they can run the business activities or attract the customers towards buying their product or services.

Psychographic segmentation

Psychographic segmentation is the segmenting of the market based on various psychological factors of the customers which influence their perception of their consumer behavior etc please stop

• Psychographic segmentation is done using the following factors
• Thinkers which include matured and unmatured customers
• Experiences which include the experience the consumer or the customer is having about the product or services
• Strivers which include unstable customers and try to copy the rich brand

Example

• Psychographic segmentation for the various luxurious products such as iPhone required to analyze the mentality of the customers towards buying the product. Matured and experienced customers are more potential than customers who are strivers or customers who copy the rich brand.
• Customers who are unmatured are difficult to convert towards buying the product and difficult to make them aware of the product or services.

Behavioral segmentation

Beverly segmentation involved in segmenting the market based on the various behavioral factors of the customers. Different customers have different behavior which is responsible for making them different and companies or businesses need to analyze such customers in a different way. Consumer buying behavior is influenced by the various factors of the behavior of the customers.  segmentation is the segmentation of the market based on the packed transmission as follows

Behavioral segmentation is done on the basis of the factors belonging to the behavior of the customers. Behavioral segmentation term by using the following factors

The attitude which belongs to the learned tendency to respond towards something which can make the customers attracted towards buying the product or service

Uses include users with heavy use light use and those not having the experience of using the product or services

User status indicates the use of that product or experience of using the product or services to the various customers. Every product has its nonusers, ex-users, potential users, first-time users, and sometimes regular users also let’s talk so. So based on the level of the uses or users the segmenting of the customers can be done and it is very easy to target the potential customer for them the marketing strategy will be applied by the companies.

Example

1. Based on behavioral factors such as attitude following can be the segments made by the business organization will stop
   1. Positive attitude
   1. Negative attitude
   1. Neutral attitude

Above all the three types of the attitude the customers carry while buying or deciding to buy a specific product or service. Positive attitudes enable customers in attracting specific products or services. Whereas negative attitudes enable customers to avoid or criticize the products feature quality or services’ quality features.

• Based on the level of usage the market or the customers can be segmented as follows.

Heavy users of products or services

Light users of products or services

Nonusers of the product or services

               The above three segments shows the group of customers who is having the characteristics of the level of use. Heavy users indicate the customers consume the product or services frequently whereas light users indicate the consumption of the product or services moderately and nonusers are not having experience of consuming the product or services. The business organization focuses on the segment through the targeting process and applies the marketing strategy for this potential customers.