Bases for Consumer Market Segmentation Essay
List and discuss the major bases for segmenting consumer markets. Answer: Bases for Consumer Market Segmentation: There are number of variables involved in consumer market segmentation, alone and in combination. These variables are: Geographic variables Demographic variables Cryptographic variables Behavioral variables By using any of these segmentation bases, either individually or in combination, an organization can construct market segments for evaluation to help them select appropriate target markets. Geographic Segmentation: In geographical segmentation, market is divided into different geographical units like:
Regions (by country, nation, state, neighborhood) Population Density (Urban, suburban, rural) City size (Size of area, population size and growth rate) Climate (Regions having similar climate pattern) A company, either serving a few or all geographic segments, needs to put attention on variability of geographic needs and wants. After segmenting consumer market on geographic bases, companies localize their marketing efforts (product, advertising, promotion and sales efforts). Demographic Segmentation: In demographic segmentation, market is divided into small segments based on demographic variables like:
Age Gender Income Occupation Education Social Class Generation Family size Family life cycle Home Ownership Religion Ethnic group/Race Nationality Demographic factors are most important factors for segmenting the customers groups. Consumer needs, wants, usage rate these all depend upon
Need essay sample on "Bases for Consumer Market Segmentation"? We will write a custom essay sample specifically for you for only $ 13.90/page
A segment having demographically grouped consumers may have different cryptographic characteristics. Behavioral Segmentation: In this segmentation market is divided into segments based on consumer knowledge, attitude, use or response to product. Behavioral variables include: Usage Rate Product benefits Brand Loyalty Price Consciousness Occasions (holidays like mother’s day, New Year and Did) User Status (First Time, Regular or Potential) Behavioral segmentation is considered most favorable segmentation tool as it uses those variables that are closely related to the product itself.