Define the Four Main Segmentation Bases and List at Least Two Segmentation Variables for Each
Define the four main segmentation bases and list at least two segmentation variables for each.Marketers can base their segmentation of consumer markets on demographic, geographic locations, psychographics and behaviour with regard to the product. The first segmentation base is geographic segments. Most companies target specific cities, regions, states or countries with their product offerings. Product distribution strategy is a driving force behind geographic segmentations. Countries may be segmented based on Internet usage. Geographic segmentations are very important to organizations with an Internet presence. As an example, a consumer goods online retailer such as zalora.com and luxola.com will want to reach only customers in countries where it distribute products. These online retailers will only sell to geographic areas where they can provide their services. Therefore, companies must examine the proportion of net users in its selected geographic targets before deciding to serve the web community.
The second base is demographic segments. Demographic segmentation divides the market into segments based on variables such as age, life cycle stage, gender, income, occupation education and religion. This segmentation base is one of the most popular bases because consumer needs, wants and usage rates often vary closely with demographic variables. For the age and life cycle segmentation, consumer needs and wants change with age. For example, an online clothes retailer sells different pattern and sizes of clothes that will suites consumers with all age range. As for gender segmentation, it is dividing the market into different segments based on gender. Some cosmetic companies uses this segmentation base as they divide their cosmetic products into men and women products to suite different female and male images.The third base is psychographic segments. User psychographics includes personality, activities, interest, opinions (AIO) values and lifestyles. Personality characteristics are traits such as others- oriented and habits such as procrastination. Values are deeply held convictions such as religious beliefs. Lifestyles and activities as psychographics refer to non- product related behaviour such as playing sports or eating out. Interest and opinions are attitude and beliefs people hold on. As an example, some people find that social media is a waste of time but some find it hard to cut off from social media.