Question

Using each of the four market segmentation strategies, give examples for types of products where using that segmentation strategy would make sense. Justify your ideas.

Answer 1

Market segmentation stratigies :

1. Geographic market segmentation: herein the market is classified on the basis of country, region, climate, market size, market density.

Types of products to use: selling of cotton and light weight clothes in the region of hot climate like countries near equator as most of the months in the year is hot. Sells of light and cotton clothes will be on high demand.

2. Demographic market segmentation- herein the market is segmented on the basis od gender, age, income etc.

Types of products : in a low to mid income group country, the focus should be to sell products at low cost, even though quality can be adjusted accordingly. Selling items at reasonable price will make a firm profitable in this case.

3.Psychographic market segmentation- it includes classification on the basis of lifestyle, belief, values etc.

Types of products: A area where people are attached to their own custom and tradition is likely to not adapt to any changes in their way of living. Thus they must be served as per their own way of living. For example selling of goods with the fusion such as glocalisation.

4. Behavioural segmentation of market- herein loyality of customers, user status, readiness of buyers are gauged.

Types of products: here types of products to be sold plays a little role. What playes an important role is to retain the existing customers and understanding their buying pattern and kepping in influencing them. Thus a focus must be on the needs of customer and their satisfaction fulfilment.