Market Segmentation

Market segmentation is the subdivision of a market into small homogeneous sub-markets which an organization can successfully satisfy.

I have  subdivided the market into four basis as follows;

  1. Demographic Basis

This consists of dividing the market into groups on the basis of certain demographic variables.

  • Age

Consumers needs and wants change with age. A variety of products are aimed at different age groups for example clothing, food, books etc.

  • Gender

It is employed to segment a number of markets for example clothing, perfumes, soaps, etc.

  • Family life and cycle stages

Product needs of a household vary according to marital status and the presence and age of children

  • Income

Consumer earnings take many forms such as salary and wages. This greatly determines what  they are ready to spend.

  • Education

The level of consumer’s education has implications for marketers. Highly educated consumers may demand high quality goods and services.

  • Occupation

A consumer’s day to day work is likely to lead to certain needs and wants for goods and wants.

  • Religion

This influences what some consumers are to buy or otherwise for example Christians and Muslims do not take alcoholic beverages


  1. Psychological basis

Under this basis, variables are divided into;

  • Social class

This has a strong influence on a person’s preferences for example clothing, home furnishing, leisure activities etc.

  • Lifestyle personality

Peoples’ interests in various groups is influenced by their lifestyle. The products that people consume express their lifestyle.

  • Personality

It is used by marketers to segment personality variables. Marketers endow their products with brand personality to appeal to corresponding consumer personality.


  1. Geographic Basis

A marketer can us two variables to segment a market.

  • Geographic entities

The market is divided into different geographic entities for example, countries, continents, cities, etc.

  • Climate

This variable has broad impact on peoples’ behavior and product need.


  1. Behavioral basis

Consumers are divided into groups on the basis of their behavior in the market place. The variables used include;

  • Usage rate

Markets for most products can be segmented into light, medium and heavy users groups.

  • User status

A market can be segmented into non-user, X-user, potential user and regular user of a product.

  • Benefits sought

A market can be segmented according to particular benefits they seek through buying a product.

  • Occasions

Buyers can be distinguished according to the occasion when they develop a need for a product.

  • Loyalty status

Consumer loyalty patterns can be used to segment a market. Loyalty can further be groups as;

  • Hard-core loyal
  • Soft-core loyal
  • Shifting loyal
  • Switchers loyal


Post Author: Sam Muya