Marketing and Segmentation

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Consumer markets are mostly segmented on the following bases: Geographic segmentation: The market is divided into geographical areas such as localities, regions, cities, states, countries etc. The marketer must have a clear idea about which markets to serve. It can be like offering a single product for the entire market with adjustments to suit local needs. Demographic segmentation: The market is divided into groups based on demographic attributes such asage and life cycle, gender, income, generation, occupation, religion, race, nationality, social class, family size, family life cycle etc. This form of segmentation is highly effective because most customers’ tastes and preferences are based on these attributes and they are also easy to measure. Psychographic segmentation: Psychographic factors based on which markets can be segmented include motivation, values, beliefs, lifestyle, personality etc. While demographic segmentation provides information about the people who own a product, psychographic segmentation answers the question why people buy a certain product. This helps marketers understand buyer behavior better and design communication programs, which will appeal to the target audience. Behavioral segmentation: Organizations can divide markets on the basis of behavior that customers show towards the usage of the products. This type of segmentation shows what the customer has purchased in the past. Various variables for segmenting markets on the basis of purchase behavior of customers are occasions, benefits, user status, usage rate, loyalty etc. Tanishq has segmented its market based on a combination of psychographics and behavior. The segmentation variables can be understood as follows: • Tanishq segments based on gender, by being the first brand in the jewellery category to introduce collections designed exclusively for the modern Indian woman, especially working women. • The brand values Tanishq is synonymous with are trust and purity, in a category that...
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