Market Segmentation

Segmentation is the process of analysing types of consumers and grouping

them into segments. Each person in a segment shares a same consumer
behaviour or buying habit. They also may have the same needs and wants as
others in the segment such as low cost products or fast service.

Market segmentation helps businesses simplify finding who their product or

service is aimed at (find a target market). Used as an analytical tool it helps
businesses make choices about how they should go about promotion, pricing
and location but most important of all how they design their service of product.
There are many segmentation variables, the most common are dividing a
market by:

1. Demographic Segmentation

Gender

Age

Social Class

Race/ Ethnicity

Level of income

On the right are some ways we can

split the market by demographics Education

2. Geographic Segmentation

Country

Region

Segmenting by geographical location E.g. rural, urban

 3. Psychographic Segmentation

Personality

LOLZ Consumer Behaviour

Lifestyles

Interests
Segmenting by psychographic
variables such as those seen right