Segmentation is the process of dividing markets together with all similar requirements.
Characteristics to groups of customers and prospects who are likely to show similar acquisition behaviour.
Let us now learn more about Segmentation and How brands analyse their target market.
Above the company knows who to serve in the market and how to leave an impact on those they serve. As we all know the market as a whole is huge but needs to focus on that which is lucrative, growing and compatible with your company.
Segmentation, Targeting and Positioning, also known as STP, form the basis of marketing management processes.
- Market Segmentation
- Market Targeting
- Product Positioning
Market Segmentation- Market segmentation is the process where the market is divided into subgroups of customers.
- Identify the basis for Segmentation
- Divide a diverse market into Smaller Sub-markets
Knowing your Market Segment
- Facilitates consumer-oriented marketing
- Optimises marketing program
- Leads to higher sales
Stages of Segmentation
- Decide the basis of Segmentation
- Determine the characteristics of segments
As we start from the image, we compare three brands of the smartphone- Apple, Motorola and Micromax.
These brands use the same basis to segment the market.
Basis of Segmentation
- Demographic Segmentation
- Geographic Segmentation
- Behavioural Segmentation
- Psychographic Segmentation
Demographic Segmentation – Here, the market is divided into segments based on variables such as age, gender, income, occupation, education level, marital status, religion or nationality.
Geographic Segmentation- Here the bases for dividing the market are different units such as Location, Urbanicity, Climate, Culture and Language.
Behavioural Segmentation- here, buyers are divided into groups based on usage rate, benefit desired, loyalty status, user status.
Psychographic Segmentation- Here is the basis of segmentation lifestyle, personality and values.