SEGMENTATION

Market segmentation is a marketing strategy that involves dividing a broad target market
into subsets of consumers, who have common needs and priorities, and then designing and
implementing strategies to target them.

TYPES OF SEGMENTATION
1. GEOGRAPHIC SEGMENTATION: Geographic segmentation refers to dividing a market into
different geographical units such as nations, states, regions, cities, or neighbourhoods.
For example, national newspapers are published and distributed to different cities in different
languages to cater to the needs of the consumers.
2. DEMOGRAPHIC SEGMENTATION: Demographic segmentation divides the markets into
groups based on variables such as age, gender, family size, income, occupation, education,
religion, race and nationality. Demographic factors are the most popular bases for
segmenting the consumer group. One reason is that consumer needs, wants, and usage
rates often vary closely with the demographic variables.
For example, (Age)McDonald’s targets children, teens, adults and seniors with different ads
and media. (Gender)Lakme sells beauty care products to women. (Income) Income includes
housing, furniture, automobile, clothing, alcohol etc.
3. PSYCHOGRAPHIC SEGMENTATION: This segmentation uses lifestyle and personality
traits. In the case of certain products, buying behaviour majorly depends on lifestyle and
personality characteristics. It works on VALs framework i.e., value, attitude and lifestyle.
For example, ZARA and ARROW
4. BEHAVIOURIAL SEGMENTATION: Behavioural segmentation is the process of sorting and
grouping customers based on the behaviours they exhibit towards a product.
For example, Cadbury’s advertising to promote the product during festive season as sweet
represent share of love.