Describe the basis upon which consumer markets could be segmented, highlighting the reasons

BASES FOR THE SEGMENTATION OF CONSUMER MARKETS

i. Geographic segmentation – This calls for dividing the market into different geographical units such as nations, states, counties, cities, or neighbourhoods. The company decides to operate in one or a few geographical areas or to prepare in all but pay attention to variations in geographical needs and preferences. Some companies even subdivide major cities into smaller geographical areas/major submarkets depending on the preferences of the individuals residing in those areas.

ii. Demographic segmentation – This consists of dividing the market into groups on the basis of demographic variables such as age, sex, family size, family life cycle, income, occupation,, education, religion, race and nationality. Demographic variables are the most popular bases for distinguishing customer groups. One reason is that consumer wants, preferences, and usage rates are often highly associated with demographic variables. Another is that demographic variables are easier to measure than most other types of variables. Even when the target market is described in non demographic terms (say, a personality type), the link back to demographic characteristics is necessary in order to know the size of the target market and how to reach it efficiently.

iii. Psychographic segmentation – The buyers are divided into different groups on the basis of social class, life style, or personality characteristics. People within the same demographic group can exhibit very different psychographic profiles.

iv. Behaviour segmentation – The buyers are divided into groups on the basis of their knowledge, attitude, use or response to a product. Many marketers believe that behaviour variables are the best starting point for constructing market segments.



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