Question: What Are The Variables Of Segmentation?

What is segmentation with example?

This is why marketers use segmentation when deciding a target market.

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..

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 a good segmentation?

Good market segmentation research provides a company with clear direction on which group or groups represent the best target—one that represents a disproportionally high share of potential profitability to the company and can easily be identified in the population or in customer databases.

What are the 4 types of market segmentation?

Types of Market SegmentationGeographic Segmentation. While typically a subset of demographics, geographic segmentation is typically the easiest. … Demographic Segmentation. … Firmographic Segmentation. … Behavioural Segmentation. … Psychographic Segmentation.

What are the variables used for segmenting the market of FMCG goods?

It includes age, gender, family status, occupation, income, race and religion. Marketing to demographics enables you to better resonate with your customers. Geographics: Region, climate and population density are the key areas that affect your customers’ needs with this type of segmentation.

What are the 5 main different segments for demographics?

The five main demographic segments are age, gender, occupation, cultural background, and family status. What is the difference between geographic and demographic segmentation?

What are the 5 bases of segmentation?

There are 5 ways to break down your customer profile into unique segments, including behavioral, psychographic, demographic, geographic, and firmographic!

Which segmentation variables does Starbucks use?

Starbucks uses demographic segmentation (markets by age, gender, income, ethnic background, and family life cycle) as well as geographic segmentation (markets by region of a country or the world, market size, market density, or climate) and psychographic segmentation, which can link with demographics.

What is the definition of segmentation?

Definition: Segmentation means to divide the marketplace into parts, or segments, which are definable, accessible, actionable, and profitable and have a growth potential. In other words, a company would find it impossible to target the entire market, because of time, cost and effort restrictions.

What makes a segment attractive?

They look at the potential profitability (is there an opportunity for a higher profit margin?) as well as the growth rate of the market segment. A segment becomes attractive when the product in question seems new to the customers and has plenty of room to expand.

What are market segmentation variables?

Segmentation VariablesEdit The factors which are be used to segment a market are the segmentation variables. Common variables include demographic, geographic, psychographics and behavioural considerations. Demographic. Quantifiable population characteristics, such as age, gender, income, education, family situation.

What are the characteristics of segmentation?

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.

What are examples of psychographics?

5 examples of psychographic characteristicsPersonalities. Personality describes the collection of traits that someone consistently exhibits over time, as commonly assessed through a 5-Factor Model. … Lifestyles. … Interests. … Opinions, attitudes, and beliefs. … Values. … Priority initiatives. … Success factors. … Perceived barriers.More items…•

Why is it important to know the variables for segmentation?

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 is an example of psychographic segmentation?

A common example of psychographic segmentation is a luxury mobile-manufacturing brand that specializes in customization. … They can also evaluate the same variables for their competitor’s target market as well for the better selection of a market for their branding activities.