CIMA E1 Syllabus E2. Marketing - Market segmentation - Notes ^{8 / 11}

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

5. Family life cycle segmentation - single professionals / unmarried individuals / newly married couples

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