Four Bases of Segmentation
Four bases of segmentation
Geographic
Collecting and analysing information according to the location of the customer or other data source. Geographic segmentation is often used in marketing, since companies selling products and services would like to know where their products are being sold in order to increase advertising and sales efforts there.
A local shop such as a local takeaway use geographic segmentation by targeting customers within a 10 mile radius, they can do this by posting leaflets to the local area.
Demographic
Demographic segmentation consists of categorizing the market according to differences, usually with regards to the wants and needs of customer groups. It is commonly used to identify niches in need of specifically targeted efforts. The reason of demographic segmentation is to specifically target certain people in order to make sure the products are aimed at the right people.
This information helps the business owner develop a marketing strategy that appeals to individuals with this demographic profile. For example, an owner of a women's clothing store might attempt to reach this market by developing an ad campaign to promote a new line of business attire.
Behavioural
Behavioural Segmentation is market segmentation based on certain consumer behaviour characteristics, such as benefits sought by the consumer, the extent to which the product is consumed, brand loyalty, price, and the ways in which the product is used.
For example if Colgate customers have been using their toothpaste for a while and had no problems with it, a small price increase probably would not make them change toothpaste brand.
Psychographic
Psychographics are the attributes that describe the personality, attitudes, beliefs, values, emotions, and opinions of customers, and prospective customers. Demographic segmentation is who the people that buy the product are (age, gender, job) and psychographic segmentation is why people buy the product.
Geographic
Collecting and analysing information according to the location of the customer or other data source. Geographic segmentation is often used in marketing, since companies selling products and services would like to know where their products are being sold in order to increase advertising and sales efforts there.
A local shop such as a local takeaway use geographic segmentation by targeting customers within a 10 mile radius, they can do this by posting leaflets to the local area.
Demographic
Demographic segmentation consists of categorizing the market according to differences, usually with regards to the wants and needs of customer groups. It is commonly used to identify niches in need of specifically targeted efforts. The reason of demographic segmentation is to specifically target certain people in order to make sure the products are aimed at the right people.
This information helps the business owner develop a marketing strategy that appeals to individuals with this demographic profile. For example, an owner of a women's clothing store might attempt to reach this market by developing an ad campaign to promote a new line of business attire.
Behavioural
Behavioural Segmentation is market segmentation based on certain consumer behaviour characteristics, such as benefits sought by the consumer, the extent to which the product is consumed, brand loyalty, price, and the ways in which the product is used.
For example if Colgate customers have been using their toothpaste for a while and had no problems with it, a small price increase probably would not make them change toothpaste brand.
Psychographic
Psychographics are the attributes that describe the personality, attitudes, beliefs, values, emotions, and opinions of customers, and prospective customers. Demographic segmentation is who the people that buy the product are (age, gender, job) and psychographic segmentation is why people buy the product.