Question

Define the components for segmenting consumer markets

Answer 1

The components of segmenting consumer markets are:

Demographic: Here we segment the customer based on their age, gender, family size, income, occupation, religion, race, and nationality. This is the most commonly used method to segment the market and it is very useful to identify the target customers in a market. These variables will tell about the types of people present in the market and how they can have an impact on the marketing mix the company is trying to create.

Behavioral: The company makes use of this segmentation method when they want to study the customer buying pattern and how they behave to a specific product or a service in the market. Based on this segmentation, the company will create the marketing strategy targeting each type of customer base.

Psychographic: This method mainly relies on the customer lifestyle and the social status in the market. The pricing of the product will depend on this segmentation and will play an important role in creating the marketing mix. The company will study what factors affect the lifestyle and the social status of the potential customers.

Geographic: This segmentation is based on the location of the potential customers. The product cannot be released worldwide without knowing the demand in the market. The company will have to identify the market with more customer demand and create the marketing and sales strategy accordingly.