MSG Team's other articles

12518 What is Brand Value ?

Branding has emerged as a corporate strategy in the recent times. All business organizations in all sectors have embraced the strategy of building their identity through their corporate brands besides the product related brands. Branding is definitely a marketing strategy. However the strategy of investing into brand building and managing the reputation of the corporate […]

11557 Time Management and Planning in Sales Management

Sales management helps in the achievement of sales targets within defined deadlines through effective planning and budgeting. Through effective sales management, individuals generate revenues and earn profits for the organization. It is essential for the sales professionals to understand the value of time. One must fulfill commitments and there should be no turn backs in […]

10465 New Product Pricing

Pricing is an important parameter; organizations need to take care of while launching a new product or service in the market. Before deciding the price of a new product, it is essential for organizations to understand and also calculate total costs involved in the entire process of the product development be it designing, manufacturing or […]

12717 The Changing Face of Services Marketing

Marketing of Services has emerged as an important sub discipline of marketing in its own right. It has evolved phenomenally to emerge as a major field of study with far reaching implications in today’s increasingly service driven economies. It is then, only natural, to wonder what is the future course that this field of study […]

11085 Role of Coupons in Retail Marketing

What is Retailing? The sale of products to the customers from a fixed location (malls, department stores, super markets and so on) in small quantities for their end use is called as retailing. Coupons play an important role in promoting the retail stores and making the brand popular amongst the masses. What are Coupons? Any […]

Search with tags

  • No tags available.

What is Segmentation?

Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics.

Market Segmentation

  • Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference.

  • A market segment is a small unit within a large market comprising of like minded individuals.

  • One market segment is totally distinct from the other segment.

  • A market segment comprises of individuals who think on the same lines and have similar interests.

  • The individuals from the same segment respond in a similar way to the fluctuations in the market.

Basis of Market Segmentation

  1. Gender

    The marketers divide the market into smaller segments based on gender. Both men and women have different interests and preferences, and thus the need for segmentation.

    Organizations need to have different marketing strategies for men which would obviously not work in case of females.

    A woman would not purchase a product meant for males and vice a versa.

    The segmentation of the market as per the gender is important in many industries like cosmetics, footwear, jewellery and apparel industries.

  2. Age Group

    Division on the basis of age group of the target audience is also one of the ways of market segmentation.

    The products and marketing strategies for teenagers would obviously be different than kids.

      Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams
      Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags
      Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines, apparels and so on

     

  3. Income

    Marketers divide the consumers into small segments as per their income. Individuals are classified into segments according to their monthly earnings.

    The three categories are:

      High income Group
      Mid Income Group
      Low Income Group

    Stores catering to the higher income group would have different range of products and strategies as compared to stores which target the lower income group.

    Pantaloon, Carrefour, Shopper’s stop target the high income group as compared to Vishal Retail, Reliance Retail or Big bazaar who cater to the individuals belonging to the lower income segment.

  4. Marital Status

    Market segmentation can also be as per the marital status of the individuals. Travel agencies would not have similar holiday packages for bachelors and married couples.

  5. Occupation

    Office goers would have different needs as compared to school/college students.

    A beach house shirt or a funky T Shirt would have no takers in a Zodiac Store as it caters specifically to the professionals.

Types of Market Segmentation

  • Psychographic segmentation

    The basis of such segmentation is the lifestyle of the individuals. The individual’s attitude, interest, value help the marketers to classify them into small groups.

  • Behaviouralistic Segmentation

    The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand.

  • Geographic Segmentation

    Geographic segmentation refers to the classification of market into various geographical areas. A marketer can’t have similar strategies for individuals living at different places.

    Nestle promotes Nescafe all through the year in cold states of the country as compared to places which have well defined summer and winter season.

    McDonald’s in India does not sell beef products as it is strictly against the religious beliefs of the countrymen, whereas McDonald’s in US freely sells and promotes beef products.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Marketing Mix Analysis for Entry of a Microwave Maker

MSG Team

Target Market Selection

MSG Team

Target Marketing – Meaning, Basis and its Need

MSG Team