Types of market segmentation

The consumer market can be segmented on the basis of following categories viz. geographic, demographic, consumer behavioral, psychographic, etc. The following are the most common forms of market segmentation practices.

Demographic Segmentation

Here, marketing manager differentiate the groups of customers on the basis of demographic variables viz. age, gender, ethnicity, family size, family life cycle, martial status, education, race, religion, language, income, occupation, etc. The variables used for demographic segmentation helps in dividing a large population into specific customer groups and helps an organization to target its consumers more accurately. With this type of segmentation, an organization can categorize the needs of consumers. Some of the advantages of Demographic basis are as follows:

  • These are easy to recognize and easy to measure.
  • Their data can be easily available.
  • These can be easily correlated with sales and other marketing efforts.

Behavioral segmentation

Here, the marketing manager differentiate the groups of customers  according to their knowledge of, attitude towards, usage rate, response, loyalty status, and readiness stage to a product. Many marketers believe that behavior variables are the best starting point for building market segments.

Geographic Segmentation

It is one of the simplest methods of market segmentation. Here, marketers can segment the people according to the geographic criteria such as nations, states, regions, countries, cities, postal codes or neighborhoods. In it, the regional differences in terms of topography, climate, population and its density may be considered as the base for market segmentation. The entire market of a production may be segmented on geographic basis. The whole market may be divided and sub-divided on area basis and geographic basis.

Psychographic Segmentation

It describes the human characteristics of consumers. To define a market segment, psychographic segmentation plays a crucial role. In it, consumers are classified into market segments on the basis of their personality, attitude, values, self-image, interests, opinions, lifestyle, etc. According to attitude towards life, people may be classified as traditionalists, achievers, etc.

Benefit segmentation

The benefit segmentation is a form of market segmentation based on the differences in specific benefits that different groups of consumers look for in a product. Here, marketing manager can segment the market based upon quality, performance, customer service, special features, or other benefits.  Many business enterprises use this type of segmentation such as auto, clothing, furniture, consumer electronics industries, etc.

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  • Arshi chitroju

    Thank you for uploding this question.
    It is so simple to read and understand,
    It is very useful for many like business one’s and who are studying ecommerce subject,
    definately one who write this answer in examination will score 10 marks.