What Is Market Segmentation? What Are the Most Frequently Used

Question

Examlex · Accepted Answer

The Answer is Market segmentation is the process of dividing the market into groups that have somewhat homogeneous needs for a product or service.Segmenting is simply a way to divide the total market-everyone in the world,essentially-into manageable pieces that have some common characteristics.Although one could divide by virtually any method imaginable (by middle initial,month of birth,number of cavities,last book read,etc. ),marketers look for segments that are likely to have similar needs and buying behavior.
Geographic segmentation is one method frequently used.Many businesses,large or small,choose to operate in one country,while even the biggest multinationals choose a manageable number of countries.People who live in cities often have different needs from those in rural areas.
Demographic segmentation is also a valuable way to divide the total market.Teenagers have different needs from toddlers,as do other age groups.Where and how people shop and what they buy varies because of income,ethnicity,sex,education level,marital status,and virtually any demographic variable you choose.Life cycle position-unmarried,married without children,married with small children,married with teenage children,empty nesters,retirees,and so on-also determines the types of products a person may be interested in buying.
Benefit segmentation divides customers into groups based on what benefits they seek when making product or service decisions.For example,one customer buys a certain brand of toothpaste because it is a cavity fighter.Another customer wants the toothpaste that gives him fresher breath.A third may be looking for whitening power,while a fourth may want something that fights plaque.
Another category for segmenting has to do with an individual's personality.Adventure seekers buy different products (or for different reasons)than more timid people.Hobbies,sports interests,religion,cultural interests,and similar individual factors can determine the likelihood of people purchasing certain products.

What Is Market Segmentation? What Are the Most Frequently Used

Definitions: