2 Basis for segmenting consumer markets

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2.1 Geographic segmentation 2.2 Demographic Segmentation 2.3 Psychographic Segmentation 2.4 "Positive" market segmentation 2.5 Behavioral Segmentation 2.6 Occasions 2.7 Benefits

Basis for segmenting consumer markets
Geographic segmentation
The market is segmented according to geographic criteria- nations, states, regions, counties, cities, neighborhoods, or zip codes. Geo-cluster approach combines demographic data with geographic data to [1] create a more accurate profile of specific

Demographic Segmentation
Segmentation by Age, gender, Income, social class, etc.

Psychographic Segmentation
Psychographics is the science of using psychology and demographics to better understand consumers. Psychographic segmentation: consumer are divided according to their lifestyle, personality, values. [2] People within the same demographic group can exhibit very different psychographic profiles.

"Positive" market segmentation
Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products & services. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private. Although industrial market segmentation is quite different from consumer market segmentation, both have similar objectives. All of these methods of segmentation are merely proxies for true segments, which don't always fit into convenient demographic boundaries. Consumer-based market segmentation can be performed on a product specific basis, to provide a close match between specific products and individuals. However, a number of generic market segment systems also exist, e.g. the system provides a broad segmentation of the population of the United States based on the statistical analysis of household and geodemographic data. The process of segmentation is distinct from positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved.

. Price Discrimination Where a monopoly exists. Distinct segments can have different industry structures and thus have higher or lower attractiveness Once a market segment has been identified (via segmentation). Positioning involves ascertaining how a product or a company is perceived in the minds of consumers.we segment the market according to the occasions. and targeted (in which the viability of servicing the market intended). the price of a product is likely to be higher than in a competitive market and the quantity sold less. a firm would consider the marketing communications mix best suited to the product in question.Improved segmentation can lead to significantly improved marketing effectiveness. the segment is then subject to positioning. Behavioral Segmentation In behavioral segmentation. but is often seen by competition authorities as an abuse of a monopoly position. Occasions segmentation according to occasions. This part of the segmentation process consists of drawing up a perceptual map. whether or not the monopoly itself is sanctioned. This behavior is rational on the part of the monopolist. These profits can be increased further if the market can be segmented with different prices charged to different segments charging higher prices to those segments willing and able to pay more and charging less to those whose demand is price elastic. Benefits Segmentations according to benefits sought by the consumer. use of or response to a product. consumers are divided into groups according to their knowledge of. Examples of this exist in the transport industry (a plane or train journey to a particular destination at a particular time is a practical monopoly) where business class customers who can afford to pay may be charged prices many times higher than economy class customers for essentially the same service. The price discriminator might need to create rate fences that will prevent members of a higher price segment from purchasing at the prices available to members of a lower price segment. attitude towards. generating monopoly profits for the seller. After the perceptual map has been devised. which highlights rival goods within one's industry according to perceived quality and price.

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