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BASICS OF MARKETING - MARKET SEGMENTATION

 MARKET SEGMENTATION


What is Market Segmentation?

Market Segmentation is the process of dividing the consumers or market into distinct groups of potential buyers with similar needs. Market Segmentation can be further divided into four categories-

Geographic Segmentation

Demographic Segmentation

Psychographic Segmentation

Behaviour Segmentation


  1. Geographic Segmentation: It makes the differentiation of target markets based on different geographical units, such as nations, regions, cities or different states. An organization plans to make the marketing mix for the product based on this segmentation. For eg: McDonalds making McAloo Tikki Burger taking Indian regional sentiments into account. Pizza hut making Chicken Tikka Pizza or Paneer Tikka Pizza to suit Indian palette.

 

  1. Demographic Segmentation: It consists of dividing the market into groups based on demographic variables such as age, gender, income, occupation, education, religion, race, nationality and family life cycle. For example, women have emerged as important business travelers. Hotels are designing rooms keeping women travelers in mind. Design changes include lobby bars, fitness facilities, hair dryers in rooms, rooms decorated in lighter covers. More women are seen in advertisements to attract this fast-emerging executive class to their hotel properties. Hotels and clubs often target high income groups for their direct promotional campaigns.

 

  1. Psychographic Segmentation: This segmentation divides buyers into different groups based on social class, lifestyle and personality characteristics. For example – nightclubs are designed with certain clientele in mind, young singles waiting to meet the opposite sex, singles wanting to meet the same sex, couples wanting to avoid singles bar and enjoy each other’s company. Afternoon Tea in Five star hotels like Mauryas, Taj is aimed at upper middle class.

 

  1. Behaviour Segmentation: In behaviour segmentation, buyers are divided into groups based on their knowledge, attitude, use or response to the product. Many marketers believe that behaviour variables are the best starting point for building market segments. For example – Air travel is triggered by occasions related to business, vacation or family purpose. Airline advertisements aimed at the business travelers often incorporate service, convenience and on time departures benefits in the offer. The occasions like Mother’s Day, Father’s Day, and Valentine Day are the time when marketers keenly advertise their product. The honeymoon market represents an occasion with excellent potential for the hospitality industry.

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