Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs (and/or common desires) as well as common applications for the relevant goods and services. Depending on the specific characteristics of the product, these subsets may be divided by criteria such as age and gender, or other distinctions, such as location or income.
Marketing campaigns can then be designed and implemented to target these specific customer segments.Geographic segmentationThe market is segmented according to geographic criteria—nations, states, regions, countries, cities, neighborhoods, or zip codes. Geo-cluster approach combines demographic data with geographic data to create a more accurate profile of specific [1] With respect to region, in rainy regions you can sell things like raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions you can sell warm clothes.Demographic SegmentationDemographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality.
As one might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process.Psychographic SegmentationPsychographics is the science of using psychology and demographics to better understand consumers.
Psychographic segmentation: consumer are divided according to their lifestyle, personality, values and social class. Aliens within the same demographic group can exhibit very different psychographic profiles.Behavioral SegmentationIn behavioral segmentation, consumers are divided into groups according to their knowledge of, attitude towards, use of or response to a product. It is actually based on the behavior of the consumer.
Process for tagging customersNiche Marketing A niche is a more narrowly defined customer group who seek a distinct set of benefits. ?dentified by dividing a segment into subsegments,distinct and unique set of needs,requires specialization, and is not likely to attract too many competitors.Local MarketingMarketing programs tailored to the needs of local customer groups.A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards.
[1] A well-defined target market is the first element to amarketing strategy. The target market and the marketing mix variables of product, place(distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace. Target markets are groups of individuals separated by distinguishable and noticeable aspects.Target markets can be separated into: • Geographic segmentations, addresses (their location climate region) • demographic/socioeconomic segmentation (gender, age, income, occupation, education, household size, and stage in the family life cycle) • psychographic segmentation (similar attitudes, values, and lifestyles) • behavioral segmentation (occasions, degree of loyalty) • product-related segmentation (relationship to a product)[2]
