What is Segmentation ?
Segmentation relates to a method whereby a big unit is bifurcated or divided into different tiny units with more or less comparable or associated features.
Market Segmentation
- Market segmentation is a marketing concept that splits the entire market into narrower subsets of customers with comparable flavor, request and preference.
- A market segment is a small unit of like-minded people in a big business.
- One business section is completely different from the other.
- A market segment is made up of people with comparable concerns and thinking along the same lines.
- Individuals from the same sector react in a comparable manner to price changes.
Basis of Market Segmentation
Gender- Marketers are dividing the industry into narrower gender-based sections. Both males and females have distinct interests and preferences, which is why segmentation is needed.
For males, organizations need to have distinct marketing strategies that would obviously not work for women.
A female would not buy a male-friendly item and vice versa.
In many sectors, such as cosmetics, footwear, jewelry and clothing sectors, market segmentation as per gender is essential.
Age Group- Division based on target audience age group is also one of market segmentation methods.
Obviously the products and marketing strategies for adolescents would be distinct from children.
Age group (0-10 years) — Toys, Nappies, Baby Food, Prams Age Group (10-20 years) — Toys, Apparels, Books, School Bags Age Group (20 years and above) — Cosmetics, Anti-Ageing Products, Magazines, Apparels, etc.
Income- Marketers split customers according to their revenue into tiny sections. Individuals are categorized by their monthly income into sections.
The three classes are: high-income group mid-income group low-income group shops that cater to the higher-income community would have distinct product ranges and policies compared to those that target the lower-income group.
Pantaloon, Carrefour, Shopper's stop aim the high-income group opposed to Vishal Retail, Reliance Retail, or Big Bazaar, which cater to the lower-income people.
Marital Status- Market segmentation may also be the same as persons ' marriage status. For bachelors and married couples, travel agencies would not have comparable holiday packages.
Occupation- Compared to school / college pupils, office goers would have distinct requirements. In a Zodiac Store, a beach house jacket or a funky T shirt would have no takers as it specifically serves the experts.
Types of Market Segmentation
Psychographic segmentation- The behavior of people is the foundation of such segmentation. The behavior, concern, importance of the individual helps marketers rank them into tiny organizations.
Behaviouralistic Segmentation- The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand.
Geographic segmentation- Segmentation Geographic segmentation relates to business ranking in different geographic fields. For individuals living in different places, a marketer can not have comparable approaches.
Nestle encourages Nescafe in the country's cold countries throughout the year in comparison to locations that have well-defined summer and winter seasons.
McDonald's does not distribute beef products in India as it is strictly against the countrymen's cultural views, while McDonald's offers and encourages beef products openly in the United States.
