Explain the bases of market segmentation
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SEGMENTATION BASES--:
In order successfully to implement a market segmentation strategy, a business must employ market research techniques to find patterns of similarity among customer preferences in a market. Ideally, customer preferences will fall into distinct clusters based upon identifiable population characteristics. This means that if customer requirements were plotted on a graph using certain characteristics, or segmentation bases, along the axes, the points would tend to form clusters.
In marketing jargon, customer segments must be measurable by clear characteristics; they must be large enough to constitute a market; reaching them should be predictably easy (they all watch American Idol, for example, or subscribe to one of four magazines); they must be predictably responsive to marketing; the segment must be stable over time and not a one-time aggregation.
Determining how to segment a market is one of the most important questions a marketer must face. Creative and effective market segmentation can lead to the development of popular new products; unsuccessful segmentation can consume a lot of dollars and yield nothing. There are three main types of segmentation bases for businesses to consider—descriptive, behavioral, and benefit bases—each of which breaks down into numerous potential customer traits.
Descriptive bases for market segmentation include a variety of factors that describe the demographic and geographic situations of the customers in a market. They are the most commonly used segmentation bases because they are easy to measure, and because they often serve as strong indicators of consumer needs and preferences. Some of the demographic variables that are used as descriptive bases in market segmentation might include age, gender, religion, income, and family size, while some of the geographic variables might include region of the country, climate, and population of the surrounding area.
Behavioral bases for market segmentation are generally more difficult to measure than descriptive bases, but they are often considered to be more powerful determinants of consumer purchases. They include those underlying factors that help motivate consumers to make certain buying decisions, such as personality, lifestyle, and social class. Behavioral bases also include factors that are directly related to consumer purchases of certain goods, such as their degree of brand loyalty, the rate at which they use the product and need to replace it, and their readiness to buy at a particular time.
hope it helps you...
there is your answer
SEGMENTATION BASES--:
In order successfully to implement a market segmentation strategy, a business must employ market research techniques to find patterns of similarity among customer preferences in a market. Ideally, customer preferences will fall into distinct clusters based upon identifiable population characteristics. This means that if customer requirements were plotted on a graph using certain characteristics, or segmentation bases, along the axes, the points would tend to form clusters.
In marketing jargon, customer segments must be measurable by clear characteristics; they must be large enough to constitute a market; reaching them should be predictably easy (they all watch American Idol, for example, or subscribe to one of four magazines); they must be predictably responsive to marketing; the segment must be stable over time and not a one-time aggregation.
Determining how to segment a market is one of the most important questions a marketer must face. Creative and effective market segmentation can lead to the development of popular new products; unsuccessful segmentation can consume a lot of dollars and yield nothing. There are three main types of segmentation bases for businesses to consider—descriptive, behavioral, and benefit bases—each of which breaks down into numerous potential customer traits.
Descriptive bases for market segmentation include a variety of factors that describe the demographic and geographic situations of the customers in a market. They are the most commonly used segmentation bases because they are easy to measure, and because they often serve as strong indicators of consumer needs and preferences. Some of the demographic variables that are used as descriptive bases in market segmentation might include age, gender, religion, income, and family size, while some of the geographic variables might include region of the country, climate, and population of the surrounding area.
Behavioral bases for market segmentation are generally more difficult to measure than descriptive bases, but they are often considered to be more powerful determinants of consumer purchases. They include those underlying factors that help motivate consumers to make certain buying decisions, such as personality, lifestyle, and social class. Behavioral bases also include factors that are directly related to consumer purchases of certain goods, such as their degree of brand loyalty, the rate at which they use the product and need to replace it, and their readiness to buy at a particular time.
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bases for market segmentation are:
1. Geographic Segmentation
People living in one region of the country have purchasing and consuming habit which differs from those living in other regions. For example, life style products sell very well in metro cities
2. Demographic Segmentation
Demographic variables such as age, occupation, education, sex and income are commonly used for segmenting markets.
3. Psychographic Segmentation
Under this method consumers are classified into market segments on the basis of their psychological make-up, i.e., personality, attitude and lifestyle.
4. Behavioristic Segmentation
In this method consumers are classified into market segments not the basis of their knowledge, attitude and use of actual products or product attributes.
5. Volume Segmentation
Consumers are classified light, medium and heavy users of a product. In some cases, 80 per cent of the product may be sold to only 20 per cent of the group. Marketers can decide product features and advertising strategies by finding common characteristics among heavy users. For example, airlines having ‘Frequent Flyer’ are using user rate as the basis of market segmentation. Generally, marketers are interested in the heavy user group.
6. Product-space Segmentation
Here the buyers are asked to compare the existing brands according to their perceived similarity and in relation to their ideal brands.
7. Benefit Segmentation
Consumer behaviour depends more on the benefit sought in product/service than on demographic factors. Each market segment is identified by the major benefits it is seeking. Most buyers seek as many benefits as possible.
1. Geographic Segmentation
People living in one region of the country have purchasing and consuming habit which differs from those living in other regions. For example, life style products sell very well in metro cities
2. Demographic Segmentation
Demographic variables such as age, occupation, education, sex and income are commonly used for segmenting markets.
3. Psychographic Segmentation
Under this method consumers are classified into market segments on the basis of their psychological make-up, i.e., personality, attitude and lifestyle.
4. Behavioristic Segmentation
In this method consumers are classified into market segments not the basis of their knowledge, attitude and use of actual products or product attributes.
5. Volume Segmentation
Consumers are classified light, medium and heavy users of a product. In some cases, 80 per cent of the product may be sold to only 20 per cent of the group. Marketers can decide product features and advertising strategies by finding common characteristics among heavy users. For example, airlines having ‘Frequent Flyer’ are using user rate as the basis of market segmentation. Generally, marketers are interested in the heavy user group.
6. Product-space Segmentation
Here the buyers are asked to compare the existing brands according to their perceived similarity and in relation to their ideal brands.
7. Benefit Segmentation
Consumer behaviour depends more on the benefit sought in product/service than on demographic factors. Each market segment is identified by the major benefits it is seeking. Most buyers seek as many benefits as possible.
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