Demographic Segmentation
Study of a demographic segment and its sub segment falling in the age group 18 year to 25 years Saneel Gaonkar IBS Gurgaon
Study of a demographic segment and its sub segment falling in the age group 18 year to 25 years
Introduction
Different kinds of people display different buying patterns even in a segment of age group 18 years to 25 years. This truth is well understood by those people who are responsible for market research, product development, pricing, sales and strategy. Market segmentation is the identification of portions of market that are different from one another. Every individual falls under one or other demographic segment of the society
‘Mr. Philip Kotler has defined a market segment as a group of customers who share a similar set of needs and wants (Philip Kotler, 2009).’ A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. The criteria that a true market segment should meet are as follows: distinct from other segments, homogenous within the segment, it responds similarly to market stimulus and it can be reached through market intervention. Researchers try to define segments by looking at descriptive characteristics: geographic, demographic and psychographic. Then they examine whether these customer segments exhibit different needs or product responses. Few other researchers have tried to define segments looking at behavioral consideration such as consumer responses to benefits, use occasions or brands. Researchers than see whether different characteristics are associated with each consumer response segment. (Philip Kotler, 2009). The key here is to identify customer differences.
The major segmentation variables are Geographic, demographic, psychographic, and
Study of a demographic segment and its sub segment falling in the age group 18 year to 25 years
Introduction
Different kinds of people display different buying patterns even in a segment of age group 18 years to 25 years. This truth is well understood by those people who are responsible for market research, product development, pricing, sales and strategy. Market segmentation is the identification of portions of market that are different from one another. Every individual falls under one or other demographic segment of the society
‘Mr. Philip Kotler has defined a market segment as a group of customers who share a similar set of needs and wants (Philip Kotler, 2009).’ A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. The criteria that a true market segment should meet are as follows: distinct from other segments, homogenous within the segment, it responds similarly to market stimulus and it can be reached through market intervention. Researchers try to define segments by looking at descriptive characteristics: geographic, demographic and psychographic. Then they examine whether these customer segments exhibit different needs or product responses. Few other researchers have tried to define segments looking at behavioral consideration such as consumer responses to benefits, use occasions or brands. Researchers than see whether different characteristics are associated with each consumer response segment. (Philip Kotler, 2009). The key here is to identify customer differences.
The major segmentation variables are Geographic, demographic, psychographic, and
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