Ivy Marasigan

BSBA Mkt 3-A

What Are the Challenges of Market Segmentation?

Market segmentation is the practice of dividing a market into distinct subsets
of consumers who have similar needs, characteristics, or behaviors. This
division helps businesses tailor their products, marketing strategies, and
services to better meet the specific needs of these different groups. There are
various types of segmentation methods:
Demographic Segmentation: Divides the market based on demographic factors
such as age, gender, income, education, occupation, family size, ethnicity, and
marital status. This segmentation helps in creating products and marketing
messages tailored to specific demographic groups. For example, a toy company
might target parents of young children with age-appropriate toys or luxury
brands might target high-income individuals with exclusive products.

Geographic Segmentation: Segments the market based on geographic

boundaries like region, climate, population density, urban or rural areas, and
cultural preferences. This segmentation recognizes that different regions might
have unique preferences and needs. For instance, a beverage company might
promote different products in regions with varying climates or cultural tastes.

Behavioral Segmentation: Segments consumers based on their behaviors, usage

patterns, purchase decisions, brand loyalty, and engagement with products or
services. This approach groups consumers by how they interact with products
and services, allowing companies to tailor marketing strategies accordingly. For
instance, a gym might create different promotions for regular gym-goers versus
occasional visitors.

Psychographic Segmentation: Segments consumers based on psychological

characteristics, lifestyle, values, attitudes, interests, and personality traits. This
segmentation helps in understanding consumer motivations, aspirations, and
preferences. For instance, a travel company might target adventure seekers with
adrenaline-filled travel experiences, while targeting relaxation and luxury to
another segment that values comfort and tranquility.
How Do You Develop a Market Segmentation Strategies?
Developing a market segmentation strategy is an iterative process that requires
ongoing refinement and adjustment based on evolving market dynamics and
consumer behaviors. It's essential to stay flexible and responsive to changes in
the market environment while consistently striving to meet the unique needs of
each identified segment.
Requirements for Effective Marketing Segmentation
A segmentation strategy becomes a powerful tool for businesses to understand
their customer base better, create targeted marketing campaigns, and deliver
products or services that resonate with specific consumer needs and
preferences.