What Are The 4 Types Of Market Segmentation?

What are the 6 main types of market segmentation?

This is everything you need to know about the 6 types of market segmentation: demographic, geographic, psychographic, behavioural, needs-based and transactional..

What are market segments examples?

For example, common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common examples of market segmentation include geographic, demographic, psychographic, and behavioral.

Which market segmentation is best?

Typically, classical marketing approaches use demographics as the basis for segmentation and then targeting. Demographic segmentation in online can also be useful. For example, “gender” can be a useful segmentation split because people can behave very differently online depending on whether they are male or female.

What are the main market segments?

Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types. Here are several more methods you may want to look into.

What are the 5 market segments?

What are the 5 Types of Market Segmentation? There are 5 ways to break down your customer profile into unique segments, including behavioral, psychographic, demographic, geographic, and firmographic!

What are the benefits of market segmentation?

Market segmentation offers the following potential benefits to a business:Better matching of customer needs:Enhanced profits for business:Better opportunities for growth:Retain more customers:Target marketing communications:Gain share of the market segment:

What are the 7 market segmentation characteristics?

Market Segmentation: 7 Bases for Market Segmentation | Marketing ManagementGeographic Segmentation: … Demographic Segmentation: … Psychographic Segmentation: … Behavioristic Segmentation: … Volume Segmentation: … Product-space Segmentation: … Benefit Segmentation:

What is market segmentation and its types?

Market segmentation is the research that determines how your organisation divides its customers or cohort into smaller groups based on characteristics such as, age, income, personality traits or behaviour. These segments can later be used to optimise products and advertising to different customers.

What are the steps in market segmentation?

The 4 critical stages of your market segmentation plan [Checklist…Objective Setting. Set segmentation objectives and goals. Identify segmentation variables and develop theories.Identify Customer Segments. Research design. Data collection. … Develop Segmentation Strategy. Select target segment. … Execute Launch Plan. Identify key stakeholders.

What is market segmentation and its importance?

Segmentation helps marketers to be more efficient in terms of time, money and other resources. Market segmentation allows companies to learn about their customers. They gain a better understanding of customer’s needs and wants and therefore can tailor campaigns to customer segments most likely to purchase products.

What are the 3 target market strategies?

The three activities of a successful targeting strategy that allows you to accomplish this are segmentation, targeting and positioning, typically referred to as STP.

What is the difference between segmentation and targeting?

Market segmentation is the process of categorizing the market into different groups, according to demographic, geographic, behavioral and psychographic traits. The target market is the market segment that the business is focusing on for a specific product or marketing campaign.

What are customer segments examples?

The most common types of customer segmentation are:Demographic Segmentation – based on gender, age, occupation, marital status, income, etc.Geographic Segmentation – based on country, state, or city of residence. … Technographic Segmentation – based on preferred technologies, software, and mobile devices.More items…•

What is an example of target market?

Small businesses often target customers by gender or age. For example, a women’s clothing retailer directs its promotional efforts at women. … Similarly, some small companies market to specific age groups. Companies selling life insurance for people close to retirement age may target people 50 and over.

What are the characteristics of good market segment?

Regardless of your approach, a useful segmentation should include these six characteristics: Identifiable. You should be able to identify customers in each segment and measure their characteristics, like demographics or usage behavior. Substantial. … Accessible. … Stable. … Differentiable. … Actionable.