Market Segmentation

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SEGMENTATION: An organization cannot satisfy all the needs and wants of all the consumers. Therefore, Market is divided into different segments so an organization can focus on the needs and wants of the specific consumers who share similar needs and demonstrate similar buyer behavior. In the world, there are different types of buyers with their own needs and behavior. Segmentation is the process to match groups of the purchasers with same needs and wants. Market segmentation: The division of a market into different groups or the process of splitting customers in a market into different groups or segments, within which customers show similar buying behavior and share a similar level of interest in the same set of needs and wants…show more content…
The population can be divided into age, gender, income, and family lifecycle amongst other variables. As people age their needs and wants change, some organizations develop specific products aimed at particular age groups. Gender segmentation is commonly used within the cosmetics, clothing and magazine industry. Income segmentation is another strategy used by many organizations Products and services are also aimed at different lifecycle segments. Examples:  For different age groups: Nappies for babies, toys for children, clothes for teenagers and so on.  Introduction of Maxim, ( male lifestyle magazine covering male fashion, films, cars, sports and technology. Psychographic Segmentation: o It is based on variables such as values, attitudes, opinions, interests, personality and lifestyle. o It is used highly in the hospitality industry o VALS (Values And Lifestyles)  Principle Oriented- principles or beliefs rather than feelings, events, or desire for approval.  Status Oriented- status or other people’s actions, approval, or opinions.  Action Oriented- action prompted by a desire for social or physical activity, variety, and risk taking. Behavioral Segmentation: It is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought. It refers to why people purchase a product or service. How will the product enhance their
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