Market Segmentation

Dividing the market into smaller segments with distinct needs, characteristics or behavior that might require separate marketing strategies or mixes.

Types

• Geographical segmentation
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation

Geographical Segmentation

Diving the market into different geographical units such as nations, states, regions, countries, cities and neighborhoods

Demographic Segmentation

Diving the market based on variables like age, family size, income, occupation, education and nationality etc.

Psychographic Segmentation

Dividing the market into segments based on lifestyle and personality characteristics

Behavioral Segmentation

Dividing the market based on their knowledge, attitudes, uses, or responses to a product, service and experience.

Targeting

The process of evaluating the attractiveness of a segment and then selecting one or more segments to enter.

Segment Attractiveness

• Number of customers
• Less competition
• Demand in long run