Erfan Ahmed

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Midterm Assessment
Section C
Market segmentation
My point of view Market Segmentation is to set up the products according to the market and
based on buyer buying behavior. Buyer can differ in one or more ways. Their wants, resources,
locations, buying attitudes and habits must be different. This variable is used to segment a
market.

Bases for Segmenting Consumer Markets

1. Geographic Segmentation - calls for dividing the market into different geographical units
such as nations, states, regions, counties, cities, or neighborhoods.

Example: Head-covering scarves company that basically targets the population that will want
a scarf, e.g., Muslim women. In western countries, such companies will target population
where more Muslim women are present to buy their product.

2. Demographic Segmentation - consists of dividing the market into groups based on

demographic variables. Such as age, gender, family size, family life cycle, income, occupation,
education, religion, race, and nationality. Demographic factors are the most popular bases for
segmenting customer groups.

Example: KFC in India does not sell beef burgers because of religious factor.

3. Psychographic Segmentation - Here buyers are divided into different groups based on social
class, lifestyle, or personality characteristics.

For example, of psychographic segmentation is a luxury mobile-manufacturing brand that

specializes in customization. These mobiles are not available for people from every class. A
certain standard of living and family income is essential to be able to purchase an expensive
mobile that is customized for each customer. By using psychographic market segmentation,
the marketing team of this mobile-manufacturing brand can divide the target market
according to their social status first and then based on lifestyles, attitudes, or personality.

4. Behavior Segmentation - In behavior segmentation, buyers are divided into groups based on
their knowledge, attitude, use or response to a product.

For example, customers who are in the research phase and are likely to leave to compare
prices could be retargeted with a “best price” or “price match” guarantee. Alternatively, a
shopper that is keen on social proof and buys in accordance with popularity trends could be
targeted with a message suggesting that the item is in high demand and moving fast.