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;
This consists of dividing the market into groups on the basis of certain demographic variables.
Consumers needs and wants change with age. A variety of products are aimed at different age groups for example clothing, food, books etc.
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
Consumer earnings take many forms such as salary and wages. This greatly determines what they are ready to spend.
The level of consumer’s education has implications for marketers. Highly educated consumers may demand high quality goods and services.
A consumer’s day to day work is likely to lead to certain needs and wants for goods and wants.
This influences what some consumers are to buy or otherwise for example Christians and Muslims do not take alcoholic beverages
Under this basis, variables are divided into;
This has a strong influence on a person’s preferences for example clothing, home furnishing, leisure activities etc.
Peoples’ interests in various groups is influenced by their lifestyle. The products that people consume express their lifestyle.
It is used by marketers to segment personality variables. Marketers endow their products with brand personality to appeal to corresponding consumer personality.
A marketer can us two variables to segment a market.
The market is divided into different geographic entities for example, countries, continents, cities, etc.
This variable has broad impact on peoples’ behavior and product need.
Consumers are divided into groups on the basis of their behavior in the market place. The variables used include;
Markets for most products can be segmented into light, medium and heavy users groups.
A market can be segmented into non-user, X-user, potential user and regular user of a product.
A market can be segmented according to particular benefits they seek through buying a product.
Buyers can be distinguished according to the occasion when they develop a need for a product.
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