Types of Market

Segmentation

Submitted to : Dr. B.B. Goyal

Submitted by : Ashish Singh
Roll No : 8
Class: MBA IB(1st year)
Bases for segmentation in
consumer markets
Geographic

Demographic

Psychographic

Behavioralistic
Geographic segmentation

Geographic segmentation tries to divide

markets into different geographical units:
Regions
Size of the area
Population density
Climate
Geographic segmentation

Regions: by continent, country, state or

even neighborhood

Size of the area: segmented according

to size of population
Geographic segmentation

Population density: often classified as

urban, suburban, or rural

Climate: according to weather patterns

common to certain geographic regions
Demographic segmentation
Demographic segmentation consists of dividing the market into groups
based on variables such as:

• Age • Social class

• Gender • Life style
• Income
Demographic segmentation

Age :Marketers design, package and promote products differently

to meet the wants of different age groups.

Good examples include the marketing of toothpaste (contrast the

branding of toothpaste for children and adults) and toys (with many
age-based segments).
Demographic segmentation

Gender: Gender segmentation is widely used in consumer

marketing.

The best examples include clothing, hairdressing, magazines and

toiletries and cosmetics.
Demographic segmentation

Income: Many companies target affluent consumers with luxury

goods and convenience services.

Good examples include Coutts bank; Moet & Chandon champagne

and Elegant Resorts - an up-market travel company.
Demographic segmentation

Social class: Consumers "perceived" social class

influences their preferences for cars, clothes, home
furnishings, leisure activities and other products &
services.
Demographic segmentation

Lifestyle: Marketers are increasingly interested in the effect of

consumer "lifestyles" on demand. Unfortunately, there are many
different lifestyle categorization systems, many of them designed by
advertising and marketing agencies as a way of winning new
marketing clients and campaigns.
Psychographic segmentation

Psychographic segmentationgroups customers according

to their lifestyle. Activities, interest, and opinions (AIO)
surveys are one tool for measuring lifestyle.
Activities
Interest
Opinion
Values
Behavioralistic segmentation

Behavioralistic segmentation is based on actual customer

behavior towards products. Some behavioralistic variable
include:
Opinions, interests and hobbies
Degree of loyalty
Occasions
Benefits sought
Usage
Behavioralistic segmentation

Opinions, interests and hobbies –this covers a huge area

and includes consumers’ political opinions, views on the
environment, sporting and recreational activities and
arts and cultural issues.
Behavioralistic segmentation

Degree of loyalty –customers who buy one

brand either all or most of the time are
valuable to firms.
Behavioralistic segmentation

Occasions –this segments on the basis

of when a product is purchased or
consumed.
Behavioralistic segmentation

Benefits sought –this requires marketers to identify and

understand the main benefits consumers look for in a
product.
Usage – some markets can be segmented into light,
medium and heavy user groups.
THANK YOU 