1. Define Market Segmentation extensively.

Market segmentation is the way how the organization identifies the target consumers that should
be prioritize and target. The first step of Market segmentation is defining the organizations target
market, trends and scope of segmentation. It is understanding and uncovering what the
consumers’ needs that satisfies them, and it is matching the products that the target consumers
wants. Second, Market mapping to determine the specific market that should be analyzed and the
people who should be segmented. Market mapping also helps in identifications of target
consumers, suppliers, retailers and final users. Third, constructing a model of the market, this step
allows the organization to categorize consumers to easily identify and establish their needs.
Wealth, lifestyle, age and socioeconomic status are the factors that needs to be consider. Fourth,
Identifying segments, at this step consumers are examined and evaluated to reveal key
information that drives them from being the target consumers. Consumers’ needs and benefits are
analyzed to gather additional information that can be added to products features and to easily
calculate prices. Lastly, segmenting, consumer are being grouped based on their characteristics to
form a “segment” and once all segments are sorted out into their respective groups the
organization can have a clearer look at each group and their decisive buying criteria and can
begin to decide what is the best segment to pursue.
2. Enumerate the bases of market segmentation and discuss them briefly.
a. Benefit segmentation- It is measuring and identifying consumers need and wants and to
satisfy them by providing the products and services with the desired benefits.
b. Psychographic segmentation- this focuses on consumer lifestyles by asking variety of
questions that will be the basis of grouping them to form a reliable segment. Observing the
consumers lifestyle can give an easier way to predict their behaviors. The VALS framework
includes vertical dimensions that segments people based on their education, income, self-
confidence, intelligence, leadership, energy and skills, while horizontal dimensions segments
people based on their ideals like achievers and strivers, by desire which includes experiencers
and makers and at the top of the framework is the innovators that has q high resources that
they have all the three motivations (thinkers, achievers and experiencers) and at the bottom is
the survivors who live complacently within their means.
c. Geodemographic Segmentation- is the identification of specific households in a market to
create an actual, addressable, mappable neighborhood where people live and shop. It is like
finding the right place to market your products and services.