Consumers in the Security Systems & Services industry vary in their needs, wants, demands, resources,

locations, access to technology, cultural differences, buying attitudes, and end use of the products and
services. Market segmentation is the process through which G4S decides to segment the overall market
in smaller segments and groups that have similar attributes, buying behaviour, socio economic
background, etc. This is done to reach out to the group of consumers more efficiently and effectively.

Example of Different Types of Segmentation

Some of the most popular ways of consumer and market segmentation are –

Geographic Segmentation

Geographic segmentation is dividing the overall market based on different geographic units such as –
countries, continents, zip codes, states, trading blocks, cities, and neighborhoods. Geographic
segmentation is highly efficient for G4S in the international markets because the prospective customers
have different culture, preferences, and administrative systems. Secondly, if the cost of transportation is
critical cost in the value proposition delivery then it is prudent to do geographic segmentation as the
costs of serving customers in different locations will be completely different.

Demographic Segmentation – Example of Demographic Segmentation

Demographic segmentation is dividing the mass market into smaller segments and groups based on
gender, income, occupation, age, life cycle stage, ethnicity, religion, and generation. As the products of
G4S provide a superior value proposition, it should segment the customers based on two main
demographic criteria – income of the prospective customer and life cycle stage. One of the most widely
used demographic segmentation frameworks in United States by various marketers is – PRIZM.

PRIZM® is the geo-demographic segmentation system that combines geographic data with various
demographic, consumer behaviors, and other data to help marketers identify, understand and reach
their customers and prospects. PRIZM classifies every U.S. household—assembled by zip code—into 66
demographically and behaviorally distinct segments.
Psychographic Segmentation – Example of Psychographic Segmentation

In the marketing world, lifestyle oriented interests, activities, and opinion, are categorized under
psychographic variables. G4S can use psychographic segmentation to divide the potential buyers into
different segments based on – personality characteristics, buying patterns, consumption opinion,
opinion on social issues, leisure activities, hobbies, and many other dimensions. Psychographic
segmentations are effective because people in the same demography can have different psychographic
characteristics based on individual life experiences and growing up environment.

One of the most widely used consumer behavior frameworks to do consumer psychographic analysis is –

VALS - A widely used segmentation method that classifies America’s adult population into eight
distinctive subgroups: innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers, and
Survivors.

Behavioural Segmentation / Use base segmentation – Example of Behavioural Segmentation / Use base
segmentation

Behavioral segmentation divides buyers into groups based on their - attitudes, product knowledge,
product uses, and other responses to a product. Many marketing experts believe that behavior