Wednesday, 21 February 2018

Basis for segmenting the consumer markets

  1. Geo-graphical Segmentation:- It stands for dividing the market into different geo-graphical units such as Nations , regions, states, cities, countries.                                                         A company may decide to operate in few or more geo-graphical areas and pay attention to geo-graphical differences in needs and wants.
  2. Demo-graphic Segmentation:-  Dividing the market into groups based on variables such as age, gender, family size and family life cycles, income, occupation, education, religion,race and nationality.                                                                (a) Age and life cycle stages                                                                    Consumer wants and needs change with age and companies use life cycle stages by offering different products for different age groups.                                                                         (b) Gender Segmentation.                                                                      Gender Segmentation has long been used in clothing, magazines. The automobile industry also uses gender Segmentation extensively.                                                                     (c) Income Segment.                                                                                  Income segment has long been used by marketers for products & services, such as automobiles, clothing, cosmetics, financial services.
  3. Psychographic Segmentation.                                                           Divides on basis of a) social class b) Life style (c)personality    Psychographic Segmentation divides buyers into different groups based on social class,life style and personality characteristics.                                     Social class means upper class, middle class and lower class. Social  class as a strong effect in preferences to cars,cloths, home furnishings, leisure activities, reading habits etc;.                                                                                             Lifestyle is a person's pattern of living. Understanding these forces involves measuring consumer major dimensions as expressed in his or her activities, interests and opinions.     

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