Recent Project and Job Topics > Marketing

Market Segmentation

What is market segmentation and what is a market segment?

A market segment is a part of the overall market or a sub-set of it. This may include people or organizations or simply a group of people that cause the company to group them as one due to their demand for a similar product or service based on the unique qualities of the product or service like price, design and function. Essentially, each market segment is different from the other in these ways:

- Different market segments have different and unique needs
- Market segments are homogeneous within the segment as they exhibit common needs
- It responds to the similar promotions or features known as market stimulus for buying the product or service
- Market segments can be reached with market intervention

What are the different market segments?

Marketing segmentation or market segmentation helps the company divide various segments on the market into smaller groups based on price, gender, interest, religion, location, income and size of the household.

What are the bases for marketing segmentation?

The bases for market segmentation can be categorized depending on geographical segmentation, psychographic segmentation, demographic segmentation, and behavioral segmentation. These can be elaborated below:

Geographic Segmentation
This marketing segmentation is determined upon the geographical criteria of the population. This criterion extends to areas, states, regions, cities, countries, neighborhoods and even zip codes. Demographic data such as the age-specific information of the population along with the geographical data helps target the market accurately.

Psychographic Segmentation
This marketing segmentation is dependent upon the lifestyle choices of the people, personalities and values. Demographic data along with information regarding the psychology of the consumers helps the company understand the market segment better.

Demographic Segmentation
Demographic segmentation simply assumes the population age criteria for marketing a product or service.

Behavioral Segmentation
This marketing segmentation is based upon the consumers, attributes, groups according to their knowledge and response to a product. Marketing segmentation is also conducted depending upon the occasions, benefits and users' status.

Marketing segmentation is very essential to avoid wasteful promotion activities from the company. This is a regular exercise as the demographics of the population change in the same areas. Marketing segmentation is facilitated with market surveys and market research.

There are various professionals associated with MBA&Co who offer services pertaining to Marketing segmentation. Moreover, MBA&Co provides numerous similar projects to MBAs.