Question

According to Kerin & Hartley (2017)’s marketing text, what are the four general bases that are used to segment consumer markets? And Why?

Answer 1

The segmentation of consumer markets requires the creation, more specifically, of subgroups from a larger population. A business may be segmented in almost dozens of ways and the segments chosen would depend on the organization and the goods and services it provides. In theory, segmentation also includes the recognition of different groups of people based on shared features.

Demographics- The use of demographics is one growing way to segment a market. Demographics are a collection of people's quantitative characteristics. These features may include race, age , income or geography. Companies that segment their markets on the basis of population tend to target specific segments of the market, which are more likely to be interested in what they offer. For example, the cosmetics industry mainly focuses on women. It may be more likely to hit people in the hunting industry. Luxury car manufacturers depend on their income-based markets. When segmenting their consumer markets, marketers will likely consider multiple demographic features.

Psychographics- Psychographics are contextual business characteristics that involve people's thought that doings. The IAO acronym for desires, behavior and thoughts also refers to psychographics. Marketers may find it difficult to segment their customers into these categories alone. Nielsen is a customer lists service focused on its unique classifications. They have split U.S. households into 66 different forms or divisions to help advertisers concentrate on psychographic consumer segments. Persons related to individuality, values , attitudes , interests or lifestyles are psychographic attributes.

Purchase Behaviors- Purchase behavior is an important way for businesses to segment their target markets. Maintain clear consumer records and their transactions, allows advertisers to recognise customers who have bought or spent those types of goods and then pursue similar deals. Marketers can also target customers of other companies by renting lists which can be utilized by conventional mail or increasingly online in direct marketing efforts.

Geographic Segmentation- The simplest form of market segmentation is Geographic Segmentation. It classifies customers according to geographical limits. The luxury car company, which choose to target clients in warm climates where vehicles are not supplied by snowy weather, may be an example of geographical segmentation. The marketing platform could focus their marketing efforts on urban centers, which are likely to work with their target customers.