Question

All of the questions are designed as if you are getting readyto open up a fitness center.

1) What type/s of segmentation basis will you use to divide the total market in the most reasonable and realistic way? Do you think the best segmentation is done on one basis or multiple basis?

All of the questions are designed as if you are getting readyto open up a fitness center. 2) Form THREE segments (groups of people) by giving them specific segment name, explain them in 2-3 sentences with different demographic and/or behavioral characteristics?

Answer 1

1. Market segmentation is done based on behavioural and demographic differences among customers. Market segmentation are of different types such as demographic segmentation, geographic segmentation, psychographic and behavioural segmentation.

Among the four types, demographic segmentation is more realistic and reasonable also. This process can be applied using census data, where demographic details such as age, gender, income, occupation, education, family size are available for each region. Hence, selecting target customers easier in this segmentation.

Segmentation on multiple basis is effective. For example, demographic segmentation based on age and gender and occupation can be better to evaluate the market demand. Multiple aspects help in product differentiation among potential customers based on demographic characteristics.

2. For a fitness center, three segmentations are health requirements, weight loss and sports focused

People with similar health requirements need similar fitness tricks and exercises. Therefore, they can be grouped together to make business cost effective. People from different age group can be included here.

People who come to the fitness center only to lose weight or maintain body shape, can be grouped together having a mix of both male and female. These people require similar weight loss machine and this segmentation is time effective also.

Another segmentation is sport focused for the sport person. They require several kinds of practices for participation in sports event.