Marketing
The technique used by marketers to get grips with the diverse nature of markets is
called Market Segmentation. It involves identification of various groups with similar
characteristics for determining a marketing strategy. It is useful to identify a ‘target
group of customers’ of a firm.
Its benefits are as follow –
1. Profitability
2. Growth
3. Customer satisfaction and retention
4. Segment dominance
5. Effective policy
The variables for the process of segmentation are as follow –
1. Psychographic – purchasing behaviour correlated with personality
(agreeable/extrovert) and lifestyle (sophisticated, conservative, trendsetter) of
consumers.
2. Behavioural – example: benefits sought by buying the product, buying
patterns (brand loyalty/switcher), usage needs, beliefs and purchase occasion.
3. Profile segmentation – describing similar groups who exhibit different
behaviour. For example: geographic location, socio-economic factors, age and gender.
Behavioural Variable
1. Benefits sought: segmenting on the basis of why the product is bought. It
might be basic benefits or a feeling if status and prestige. Example: toothpaste and
watch respectively.
2. Purchase Behaviour: brand loyalty, switching brands, special offer seekers.
Knowing the biographies (recent trends) can be helpful to target customers.
3. Usage: heavy users are receiving most marketing attention. It might be
beneficial to target light/non users to face less competition.
Psychographic variable
1. Lifestyle: terms of their way in life, interests and opinions. Example: instant
cook companies.
Profile Segmentation Variable
1. Age: grey market for old people, children, Gen Y
2. Social Class: same social class have quiet similar beliefs
3. Geography: country/ regions/ city size. Companies can use surveys to find out
such details.
4. Geo-demographics: Combining geographical barriers with demographical
variable to find another market segment.
The technique used by marketers to get grips with the diverse nature of markets is
called Market Segmentation. It involves identification of various groups with similar
characteristics for determining a marketing strategy. It is useful to identify a ‘target
group of customers’ of a firm.
Its benefits are as follow –
1. Profitability
2. Growth
3. Customer satisfaction and retention
4. Segment dominance
5. Effective policy
The variables for the process of segmentation are as follow –
1. Psychographic – purchasing behaviour correlated with personality
(agreeable/extrovert) and lifestyle (sophisticated, conservative, trendsetter) of
consumers.
2. Behavioural – example: benefits sought by buying the product, buying
patterns (brand loyalty/switcher), usage needs, beliefs and purchase occasion.
3. Profile segmentation – describing similar groups who exhibit different
behaviour. For example: geographic location, socio-economic factors, age and gender.
Behavioural Variable
1. Benefits sought: segmenting on the basis of why the product is bought. It
might be basic benefits or a feeling if status and prestige. Example: toothpaste and
watch respectively.
2. Purchase Behaviour: brand loyalty, switching brands, special offer seekers.
Knowing the biographies (recent trends) can be helpful to target customers.
3. Usage: heavy users are receiving most marketing attention. It might be
beneficial to target light/non users to face less competition.
Psychographic variable
1. Lifestyle: terms of their way in life, interests and opinions. Example: instant
cook companies.
Profile Segmentation Variable
1. Age: grey market for old people, children, Gen Y
2. Social Class: same social class have quiet similar beliefs
3. Geography: country/ regions/ city size. Companies can use surveys to find out
such details.
4. Geo-demographics: Combining geographical barriers with demographical
variable to find another market segment.
