Key Aspects of Market Segmentation
i) Demographics: Segmenting the market based on demographic variables such as age, gender, income, education, occupation, marital status, and geographic location. This helps identify groups with similar demographic profiles that may exhibit common needs or buying behaviours.
ii) Psychographics: Segmenting based on psychographic variables, which include attitude, values, interests, personality traits, lifestyle, and opinion. This approach goes beyond demographic characteristics to understand the psychological and behavioural aspects that influence consumers’ decisions.
iii) Behavioural: Segmenting based on consumer behaviour, such as usage pattern, brand loyalty, buying frequency, benefits sought, and product usage occasions. This helps identify distinct segments based on how customers interact with products or services.
iv) Geographics: Segmenting the market based on geographic variables such as culture, language, climate, and population density. This approach helps in grouping the customers based on where they live and where they go for shopping.
v) Needs and Benefits: Segmenting based on specific needs or desired benefits that customers seek from a product or service. By understanding the unique needs of different segments, businesses can tailor their offerings to better meet those needs.
vi) B2B Market Segmentation: Market segmentation is not limited to consumer markets. It is also applicable in business-to-business (B2B) contexts, where companies can segment the market based on factors such as industry, company size, location, buying behaviour, and purchasing criteria.
Once market segments are identified, businesses can develop targeted marketing strategies for each segment. This may involve customising product features, creating personalised messaging, selecting appropriate distribution channels, and designing tailored promotional campaigns. By focusing on specific customer segments, businesses can increase their competitiveness, enhance customer satisfaction, and improve overall marketing effectiveness.
Levels and Patterns of Market Segmentation
Market Segmentation refers to the process of dividing a target market into smaller groups with comparable characteristics, such as age, income, personality traits, behaviour, interests, demands, or geography. Knowing the market segmentation allows marketers to target their product, sales, and marketing strategies better.
In this article, we will understand the different aspects, levels, and patterns of market segmentation.