Market segmentation

NotesQuizObjective Test

Market segmentation

A market is not a single homogenous group of customers wanting an identical product.

Market segmentation is defined as the subdividing of a market into subgroups of customers.

Each group consists of people with common needs and preferences.

There are many different bases for segmentation:

  1. Demographic:

    - geographical area
    - age
    - gender
    - family life cycle

  2. Socio-economic - occupation/wealth

  3. Psychological - lifestyle / attitudes / values

  4. Situational / Behavioural - occasion of use / frequency of purchase

The segments should be:

  1. Measurable - able to measure size of the segment

  2. Substantial - of a sufficient size to be profitable

  3. Accessible - must be reachable

NotesQuizObjective Test