Examples of market segmentation Market segmentation is a common practice among all the industries.
Nature of a market segment A market segment needs to be homogeneous. Did we miss something. This enables a firm to concentrate more on a specific group and earn more profits rather than catering to the needs of the entire market who have different needs and desires.
In some cases, 80 per cent of the product may be sold to only 20 per cent of the group. Usage Product usage also acts as a segmenting basis. Keeping good records of customers and their purchases, allows marketers to identify those who have purchased certain types of products or spent at certain levels and to then target them with similar offers.
But segmenting requires more than just similar features. Nestle promotes Nescafe all through the year in cold states of the country as compared to places which have well defined summer and winter season.
Market Segmentation Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference.
Geographic Segmentation Geographic segmentation refers to the classification of market into various geographical areas. There are virtually dozens of ways that a market might be segmented and the segments chosen will depend on the business and the products or services it offers.
Psychographic Segmentation Psychographic Segmentation divides the audience on the basis of their personality, lifestyle and attitude. Most of the products in the market are not universal to be used by all the age groups.
But segmenting requires more than just similar features. Marketers can decide product features and advertising strategies by finding common characteristics among heavy users. Most of the products in the market are not universal to be used by all the age groups.
Psychographics Psychographics are qualitative attributes of a market and refer to the way people think and what they like to do. This group prefers popular brands and large successful companies.
By using any of these segmentation bases, either individually or in combination, an organization can construct market segments for evaluation to help them select appropriate target markets.
A person having a lavish lifestyle may consider having an air conditioner in every room as a need, whereas a person living in the same city but having a conservative lifestyle may consider it as a luxury.
Simple though it may be, it is of vital use to forming any marketing plan. Thus, many companies use geographic segmentation as a basis for market segmentation. This type of segmentation is the easiest but it was actually used in the last decade where the industries were new and the reach was less.
Segmentation bases are the dimensions that can be used to segment a market. Several definitions of segmentation bases are available, such as: “A segmentation basis is defined as a set of variables or characteristics used to assign potential customers to homogeneous groups.” (Wedel & Kamakura, ).
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 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. Gender segmentation is used in clothing, cosmetics and magazines.
3. Income: Markets are also segmented on the basis of income.
Income is used to divide the markets because it influences the people’s product purchase. Bases of Market Segmentation.
The firms can segment the market on the following bases: Geographical Segmentation: Here, the segmentation is done on the basis of the geographical location of the customers. The geographical segmentation is based on the premise that people living in one area have different purchasing or buying habits than those living in other areas of the country.The basis of market segmentation