Segmentation Bases for Consumer Markets
1. Geographic Segmentation
Divides the market into geographic units such as nations, regions, divisions, cities, or neighborhoods. This helps tailor marketing strategies to location-specific needs or preferences.
2. Demographic Segmentation
Segments the market based on population characteristics like age, sex, family size, income, education, and occupation. These factors often influence consumer needs and purchasing behavior.
3. Behavioural Segmentation
Focuses on consumers' purchase behavior, including their knowledge, attitudes, usage, or responses to a product. This helps identify patterns such as brand loyalty or product benefits sought.
4. Psychographic Segmentation
Divides the market according to consumers' social class, lifestyle, or personality characteristics. This approach captures psychological and emotional factors influencing buying decisions.
5. Benefits Segmentation
Segments consumers based on the major benefits they seek from a product class. This targets specific needs or desires that motivate purchases.
6. End Use Segmentation
Based on the final use of the product by the consumer or business. The same product may serve different applications (e.g., flour or sugar used differently), requiring tailored marketing approaches.
Segmentation Bases for Business Markets
1. Segmentation Bases for Business Markets
Business markets consist of organizations purchasing goods or services for resale or further production. Segmentation helps target these markets effectively by grouping buyers with similar characteristics.
| Segmentation Base | Definition & Key Idea | Example/Note |
|---|---|---|
| Geographic Segmentation | Divides the market based on the location of businesses. | Region, country, city, climate zones. |
| Demographic Segmentation | Divides the market by measurable characteristics such as age, sex, family size, income, education, occupation. | Helps identify customer profiles. |
| Behavioural Segmentation | Groups businesses by the major benefits sought in the product class. | Focuses on product usage or desired outcomes. |
| End Use Segmentation | Segments based on the final application of the product by the firm. | Same product used differently (e.g., flour for baking vs. industrial use). |
Key point: Business market segmentation targets organizations by their location, characteristics, behavior, or product application to tailor marketing strategies effectively.
