Bases of Market Segmentation

Topics: Marketing, Psychographic, Demography Pages: 2 (392 words) Published: September 15, 2012

Bases for Segmentation in Consumer Markets
Consumer markets can be segmented on the following customer characteristics. * Geographic
* Demographic
* Psychographic
* Behavioralistic

1. Geographic Segmentation
The following are some examples of geographic variables often used in segmentation. Region: by continent, country, state, or even neighborhood
Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions 2. Demographic Segmentation

Some demographic segmentation variables include:

Family size
Family lifecycle
Generation: baby-boomers, Generation X, etc.
Social class
Many of these variables have standard categories for their values. For example, family lifecycle often is expressed as bachelor, married with no children (DINKS: Double Income, No Kids), full-nest, empty-nest, or solitary survivor. Some of these categories have several stages, for example, full-nest I, II, or III depending on the age of the children.

3. Psychographic Segmentation
Psychographic segmentation groups customers according to their lifestyle. Activities, interests, and opinions (AIO) surveys are one tool for measuring lifestyle. Some psychographic variables include: Activities


4. Behavioralistic Segmentation
Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic variables include: Benefits sought
Usage rate
Brand loyalty
User status: potential, first-time, regular, etc.
Readiness to buy
Occasions: holidays and events that stimulate purchases

Behavioral segmentation has the advantage of using variables that are closely related to the product itself. It is a fairly direct starting point for market segmentation. Market...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Bases for Consumer Market Segmentation Essay
  • Market Segmentation Essay
  • Market segmentation Essay
  • segmentation Essay
  • Rediscovering Market Segmentation Essay
  • Market Segmentation Essay
  • The Basis of Market Segmentation Essay
  • Essay on Market Segmentation

Become a StudyMode Member

Sign Up - It's Free
Popular Drama Love | Software | Nuevo gafas de seguridad gafas de protección claro Anti rasguño Anti-niebla resistente lente militar balísticos estándar de protección UV 400