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Demographic segmentation- Demographic variables such as

age, family, size, family life cycle, gender, income,


occupation, education, religion, race, generation, nationality,
and social class are popular as these are associated with
customer needs and wants and are easy to measure.
Life Stage defines a person’s major concern, such as going
through a divorce, going into a second marriage, taking care
of an older parent, deciding to cohabit with another person,
buying a new home, and so on.
Race and Culture- Multicultural marketing is an approach
recognizing that different ethnic and cultural segments have
sufficiently different needs and wants to require targeted
marketing activities.
Geographic segmentation- It divides the market into
geographical units such as nations, states, regions, countries,
cities, or neighborhoods. Some approaches combine
geographic data with demographic data to yield even richer
descriptions of consumers and neighborhoods. There is a
geo-clustering approach called PRIZM (Potential Rating Index
by Zip Markets) NE that classifies more than half a million US
residential neighborhoods into 14 distinct groups and 66
distinct lifestyle segments called PRIZM clusters.

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