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C.4.1 Methods of Segmentation
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- Basis of segmentation Features
- C.4.2 Benefits of Market Segmentation
| C.4.1 Methods of Segmentation The consumer market is segmented using (a) income, (b) sex, caged) size of purchase, (e) Social background and (f) geography. Industrial markets are segmented according to the sector of the economy of customers. Table C compares the various methods. Table 4.6: Comparison of Segmentation methods Basis of segmentation Features Income Here customers are divided according to income e.g. High income, Middle income and Low income. Sex (gender) Men and women sometimes purchase different things. Under this method therefore the organisation categorises its customers into male and female. Geography Under the geographic method the whole market is divided into regions, districts, cities etc. It is based on the geographical location of customers. The different geographical areas of a country tend to have differences in family size, physical infrastructure, incomes, customs and purchasing patterns. Age In this method, the organisation segments the market according to the ages of customers, e.g. (a) Under 5 years b) 5 – 9 years (c) 10 – 14 years (d) years 5 – 24 years (e) 25 – 44 years. 240 Basis of segmentation Features Social Classes Customers are categorized according to the social class they belong to e.g. Upper Class, Middle Class and Lower Class. Sector The market is divided according to sector of the economy e.g. agriculture, manufacturing, trade etc. C.4.2 Benefits of Market Segmentation Marketing segmentation is important because of the following reasons a) It enables the marketer to analyse the characteristics of each segment, compare opportunities existing and design marketing programmes that suits each segment. b) By concentrating its marketing activities in one or two marketing segments, the organisation will be in abetter position to tailor its marketing programmes to suit each markets. For example, if an organisation uses income as a basis for market segmentation it could plan how best to satisfy a particular income group in terms of pricing, promotion and distribution of products. c) The consumer gains from market segmentation. This is because he gets the product that really matches his demands and needs. d) The product could be designed to satisfy the peculiar needs of each market segment and allows the organisation to focus on a few segments and serve them better. Download 3.37 Mb. Share with your friends:
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