BASES FOR SEGMENTATION

The major segmenting variables are:

1. Geographic Segmentation

2. Demographic Segmentation

3. Psycho graphic segmentation

4. Behavioral Segmentation.
1. Geographic Segmentation:
It means “division of market into different
geographical units” such as nations, states,
regions and cities.
Consumer preferences & purchase habits varies
in different areas in the countries & across the
countries. Geographical market vary in product
requirements.
Differences in food preferences important
implications for marketers.
Brands like Aashirvad & MTR marketers of ready
to eat food products need to assess the market
preferences for variety and taste.
Geographic segmentation is an important process
particularly for multi-national brands.
II) Demographic Segmentation:
In this segmentation, we divide the market in
to groups on the basis of variables such as:
age, size, family life cycle, gender, income,
occupation, race, generation, nationality.
a) Age:
Consumer needs and wants change with age.
Therefore age is important variables. So
marketers design, package and promote
products differently to meet the wants of
different age groups.
Television channels:
Cartoon Network – focused children
Mtv & V tv – channels for youngsters
Aastha – older generation
b) Life cycle stage:
A consumer stage in the life cycle is also an
important variable:
1) Infants – Baby food like cerlac & Farex
2) Young child – Leo toys & Barbie dolls
3) Adolescent – Trendy products like Jeans, t-
shirts & Coffee shops etc
4) young adult – bike, music & Mobiles
5) Old people – Investment, Health packages

Segmentation based on life cycle need to specify

exact age groups. For ex:
young child – 3 –12 years
Old people – 55 years and above
c) Gender:
Men and women have different attitudes and
behave differently.
Gender differentiation applied to product
categories like clothing, hair styling,
cosmetics & magazines.
Kinetic scooters targeted more at women.
d) income:
Income determines the ability of consumers to
participate in the market exchange. Many
companies target affluent customers with luxury
brand such as: Mercedes, Pizza, and parker
pen.
Many companies focusing consumers relatively
low income such as: Reliance phones and
Nirma washing powder.
III) Psycho graphic Segmentation:
In this segmentation buyers are divided in
to the different groups on the basis of
personality traits, life styles or values.
life style are the way in which people live, and
spend time & Money.

A significant no. of customers are strictly

vegetarians.
Even among those consume non-veg food may
avoid Beef.
Similarly “Halal Meat” is prescribed for
consumption among Muslims.
IV) Behavioural Segmentation:
Marketers divide buyers into groups
on the basis of their knowledge of, attitude
toward use of or response to a product.

Behavioural Variables:
1) Occasions:
Greeting card brands such as Archives &
Hall mark make cards for different occasions
such as birthday, wedding, diwali and raksha
bandhan etc.
Amul brand of chocolates is promoted as
a “Gift for someone you love”.
 A no. of durables like cars, two-wheelers are
promoted heavily in the festival occasions.

occasion segmentation can help firms “to expand

product usage”.

2. Benefits:
Buyers are classified according to the benefits they
seek. For example
Liril offers the benefit of “freshness”.
Cinthol offers the benefit of “escape from body
ador”.
Dettol soap offers the benefit of “total
protection”
3. User Status:
Every products has it’s a) non-user b)
potential user c) first time user d) regular
user.

4. Usage Status:
Market can be segmented into:
a) Light b) Medium c) heavy product
users.
Heavy users are often a small percentage
of the market but account for high percentage
of total consumption. For ex:cell phone
companies focus this segment and offer more
promotional schemes.
5) Buyer Readiness Status:
Some people unaware of the product, some are
aware, some are informed, some are interested,
some desire the product and some intend to buy.

6) Loyalty Status:

a) Hard-core loyalty – buy one brand all

the time
b) Split Loyal – Loyal to 2 or 3 brands
c) Shifting Loyal – Shift loyalty from one
brand to another
d) Switchers – who show no loyalty to any
brand
7. Attitude:
5 attitudes about products are
a) Enthusiastic
b) Positive
c) indifferent
d) Negative
e) hostile
 Target Market

Unaware Aware

Not tried Tried

Negative Neutral Favourable Rejecter Not yet Repeated

Opinion opinion repeated

Loyal to other brand Switcher Loyal to brand

Light regular Heavy

user user user
 EFFECTIVE SEGMENTATION CRITERIA

Not all segmentation scheme are useful. The marketers use

relevant variables to segment a market.
For ex: Segmenting a market based on the “age” is not relevant
for a product like “salt”. Life style & usage habits are relevant.

To be useful market segment must rate favourably on five key

criteria:
a) Measurable : Size, purchasing power & characteristics of
the segments can be measured.

b) Substantial : Segments are large & profitable

3. Accessible : Segments can be effectively reached &
served.

4. Differential : Segments can be distinguishable. If

married & unmarried women
respond similarly to sale on perfume , they
do not constitute separate segments.

5. Actionable : Effective programme can be formulated

for attracting & serving customers