Question

Market Segmentation Think of a durable product (example: clothing, appliance, gadget, etc.) that you purchased in the recent past. Marketers use segmentation bases, or variables, which are characteristics of individuals, groups, or organizations, to divide a total market into segments. Review the four general segmentation bases in Chapter 7 of your text. Then describe what base or bases (and the relevant variables) that might be used to segment the market for this product. Be as specific as you can. (For example, a company selling women's clothes obviously segments by gender but it probably also segments by age or profession as well). Reply

Answer 1

1. Market segmentation is dividing the market consumers into different segments or groups.There are four types of market segments Demographic , Geographic, Behavioural and psychographic segmentation.Lets see with an example the concept more clearly.Take cloths which is easily understandable and which we buy frequently.Assume I bought an woolen cloth in winter.So lets see how the market is segmented.Woolen cloths are sold more on cold climate places like Himalayan regions in India , but they can' be sold out in Deserted places like Jaipur in India.In deserts we need aerated loose cloths.This is the geographic segmentation.Consumer is segmented on the basis of Places .Now I am a boy not an adult.So I need small size of woolen cloth.This type of segmentation on the basis of age ,sex ..etc is part of demographic segmentation.Next is behavioural segmentation.Assume that I am a regular customer of brand adidas , like this for every brand royalty could affect buying decision of a customer , by this approach too market can be segmented.Psychological segmentation talks about ,how market can be segmented on the basis of lifestyle,personality,attitude ..etc.Assume that I am a mason and not very rich.So I prefer low quality woolen cloths while going to do works rather than buying a costly one (also consider casual and formal shirts).These are the market segmentation on the basis of product which I have bought.