Qno 1 market segmentation

Ans. a. 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.
b. A market segment is a small unit within a large market comprising of like-minded individuals.
c. One market segment is totally distinct from the other segment.
d. A market segment comprises of individuals who think on the same lines and have similar interests.
e. The individuals from the same segment respond in a similar way to the fluctuations in the market.
Marketing Question and Answer:- Q. 13. What are the bases for market segmentation?
Ans. The first step in developing a segmentation strategy is to select the most appropriate bases on
which to segment the market. Five major categories of consumer characteristics provide the most
popular bases for market segmentation. They include geographic factors, demographic factors,
psychological factors, socio-cultural variables, and use related factors etc.
Let’s discus these factors in brief:
(a) Geographical Segmentation:
Factors like climatic zone, region, state, district, rural and urban areas etc. constitute geographic
segmentation. These factors have an important bearing upon the segmentation of the market.
(b) Demographic Segmentation:
Demographic characteristic, such as age, sex, marital status, income, occupation, religion,
community, social status, culture and education are most often used as the basis for market
segmentation.
(c) Psychological/Psychographic Segmentation:
Psychological characteristics refer to the inner or intrinsic qualities covering personality traits,
attitudes, perception, learning, life styles and value system of the individual consumer. Consumer
segmentation strategies are often based on specific psychological variables.
(d) Socio-Cultural Segmentation:
Sociology and anthropological variables- that is, socio-cultural variables- provide further bases for
market segmentation. For example, consumer markets have been successfully subdivided into
segments on the basis of stage in the family life cycle, social class, core cultural values, sub- cultural
memberships, and cross-cultural affiliation.
(e) Use-Related Segmentation:
It is an extremely popular and effective form of segmentation categories of consumers in terms of
product, service, or brand usage characteristics, such as usage rate, awareness status, and degree of
brand loyalty.