02. Market Segmentation

Market segmentation

• Divides market into smaller sets of customers who have similar needs + interests

• Different groups in whole market have different needs

  • Unlikely single product → meet every customers needs

• Allows businesses to make different products → meet needs of each group

Main Categories

1. Income → segmented by class, occupation or annual salary

2. Ethnicity

3. Age

4. Religion → customers grouped by how they lead their lives + attitudes they share

5. Gender

6. Interests

7. Locations → business may decide to sell product only in one location

   1. May target rural or urban areas

   2. May target hot or cold areas

Geographic

• Where the customer is located

Demographic

• Age, gender, occupation, socioeconomic group

Behavioural

• Benefits sought, readiness to purchase, loyalty status

Psychographic

• Personality, lifestyles, attitude, class