Market segmentation is a market orientated approach of identifying and satisfying the diverse needs of consumers. The total market is divided into similar segments of people who have similar needs, it can be referred to as an approach that subdivides a market along some commonalities or kingship (i.e.) the members of a market segment share something in common. Because Spar falls under the South African food market, their approach would be to satisfy the
Segmentation variables spar can consider when segmenting the market are:
a) Geographic segmentation which assumes that customers within a particular geographic location, be it a country, region, city or even suburb may be targeted with the same product offering and market mix. This is the most common form of market segmentation; wherein companies segment the market by attacking a restricted geographic area. The following are examples of geographic variables often used in segmentation; (i) Religion by continent, country, state or even neighborhood. (ii) Size of metropolitan area, segmented according to size of population. (iii) Population density, often classified as urban, suburban or rural. (iv) Climate, according to weather patterns common certain geographic regions.
b) Demographic segmentation which assumes that customers differ according to certain personal variables such as age, gender, marital status, race, religion, family, size, occupation, income or education. The demographic information helps marketers to identify a profile of the typical customer to be found in each segment, which will guide them in what marketing strategy to use to reach the segment in question.
c) Psychographic segmentation which involves the breaking up of the market in terms of attributes such as social class, lifestyle and personality. Psychographic variables refer to the inner or intrinsic qualities of individual consumers. Using this base, marketers are able to segment markets...