RE: Marketing Segmentation
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Segmentation means breaking down the market for a particular product or service into segments of customers that differ in terms of their response to marketing strategies. It means breaking down the total market into self-contained and relatively homogeneous subgroups of consumers, each possessing its own special requirements and characteristics.
For example, on the basis of language, there are French, German and Italian-based segments in Switzerland.
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes
Reasons for Market Segmentation
Basis for developing targeted and effective marketing plans.
Facilitates proper choice of target marketing.
Facilitates tapping of the market, adapting the offer to the target e.g.Ford adapted its offer to suit the Indian target market.
Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality.
Density of population
Psychographics is the science of using psychology and demographics to better understand consumers. Psychographic segmentation: consumer are divided according to their lifestyle, personality, values. People within the same demographic group can exhibit very different psychographic profiles.