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Q1. Discuss The Various Types of Market Segmentation: Submitted By-Rani Puja

There are four main types of market segmentation: demographic, psychographic, geographic, and behavioral. Demographic segmentation divides the market based on factors like age, gender, income, etc. Psychographic segmentation considers personality traits, values, and lifestyles. Geographic segmentation groups customers by physical location. Behavioral segmentation looks at spending habits, purchasing patterns, brand interactions, and loyalty. Market segmentation allows companies to precisely target customers and personalize marketing.

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538 views3 pages

Q1. Discuss The Various Types of Market Segmentation: Submitted By-Rani Puja

There are four main types of market segmentation: demographic, psychographic, geographic, and behavioral. Demographic segmentation divides the market based on factors like age, gender, income, etc. Psychographic segmentation considers personality traits, values, and lifestyles. Geographic segmentation groups customers by physical location. Behavioral segmentation looks at spending habits, purchasing patterns, brand interactions, and loyalty. Market segmentation allows companies to precisely target customers and personalize marketing.

Uploaded by

Rani Pooja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Submitted by- Rani Puja

Q1. Discuss the various types of Market Segmentation


Ans- Market Segmentation is the process of dividing a market of potential customers into
groups, or segments based on different characteristics. Market segmentation is the practice of
dividing your target market into approachable groups.

Market segmentation can help to target just the people most likely to become satisfied
customers of a company. Splitting up an audience in this way allows for precisely targeted
marketing and personalized content.

The 4 basic types of market segmentation are:


1. Demographic Segmentation
2. Psychographic Segmentation
3. Geographic Segmentation
4. Behavioral Segmentation.

 These are common examples of how businesses can segment their market by
gender, age, lifestyle etc.

1. Demographic segmentation:

Demographic segmentation might be the first thing people think of when they


hear ‘market segmentation’. This is perhaps the most straightforward way of defining
customer groups, but it remains powerful. Demographic segmentation looks at
identifiable non-character traits such as:

 Age
 Gender
 Ethnicity
 Income
 Level of education
 Religion
 Profession/role in a company

For example. Companies like Facebook and Instagram use extremely specific
demographic segmentation to help advertisers effectively target their users.
So, these companies know that if you’re going to have to look at advertisements on
your social media pages, you’d rather look at relevant products and service than
things you don’t care about aren’t likely to buy.

2. Psychographic segmentation:

Psychographic segmentation is focused on your customers’ personalities and


interests. It is mainly conducted on the basis of “how” people think and “what” do
they aspire their life to be. Here it is define them by their:

 Personality traits
 Hobbies
 Life goals
 Values
 Beliefs
 Lifestyles

For Example- Luxury mobile manufacturing brand that specializes in customization.


These mobiles are not available for every class. A certain standard of living and family
income is essential to be able to purchase an expensive mobile that is customized for
each customer.

 The organic food industry is one of the fastest growing industries that
focuses on a specific target audience.

3. Geographic segmentation: The 

By comparison, geographic segmentation is often one of the easiest to identify,


grouping customers with regards to their physical location. This can be defined in
any number of ways:

 Country
 Region
 City
 Postal code

For example- McDonalds divides its market into geographic segments in different
countries, states, regions and cities. McDonalds sells burgers and target local markets
and with customized menu. Instead of using beef, in India McDonalds burgers are
made from chicken due to religious beliefs.

McDonalds’s already introduced Maharaja Mac Burger (Big Mac) with no beef and
pork due to Hindu Muslim Populations.

 Some recent examples of proper geographic segmentation came from the


response by e-commerce businesses to the coronavirus pandemic. During
lockdown stages, many businesses shifted their focus to local
communities to highlight how their services could still be accessed online.

Conversely, as public spaces began to open up again purely e-commerce brands had
to shift their marketing plans to maintain the levels of business they had seen over
the lockdown period.

4. Behavioral segmentation:
Behavioral segmentation refers to a marketing segmentation process in which
customers are divided by their behavior pattern when interacting with business. 

Here, we can group customers with regards to their:

 Spending habits
 Purchasing habits
 Browsing habits
 Interactions with the brand
 Loyalty to brand
 Previous product ratings

For example- Hotel and restaurants will target new year as they will have more
customers over the new year which is a moment of outdoor celebration.

So, these were the types of market segmentations.

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