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What is Market Segmentation?
The marketplace is a dynamic entity. Dynamic in multiple dimensions. One buyer is not necessarily similar to another. consumers differ in their wants, age, gender, location, income, attitude, and education.
Market Segmentation helps the marketer to split the market consisting of varied buyers, into smaller segments, which consists of a uniform buyer group, that can be reached more efficiently with a specific communication method, or served with a specific product. In general marketers practice four major segmentation techniques
- Geographic Segmentation: This means splitting the market based on the location of the customer. This can be segments based on continents, nations, regions, states, districts, cities, or even neighbourhoods. For example, The Times of India segments its markets based on cities.
- Demographic Segmentation: This divides the markets into groups based on variables like age, gender, income, education, religion, nationality, occupation, family size, and generation. This is one of the most popular segmentation techniques.
- Psychographic Segmentation: This technique divides the market into groups based on parameters like class, lifestyle, or personality traits.
- Behavoural Segmentation: This divides the market into groups based on parameters like knowledge, attitude, product use, response to a product, or occassion