Bases for segmentation are a strategy. It begins at dividing the market for a product into several groups. However, These groups are homogenous and shared similar characteristics. Generally, these can be classified into two categories.
- Behavioral data
It is an evidence-based data. However, it can be collected from direct questioning or observation. Therefore, Behavioral data consists of –
- Consumer intrinsic: These factors are a person’s age, gender, income, marital status, and education.
- Consumption-based: these factors are – the quantity of product purchased, the frequency of leisure activities or frequency of buying given products.
It is emotional based data that resides in the consumer’s mind. Besides, It can be identified through psychological and attitudinal questioning. However, it has no single or universal definitions to identify it. Moreover, it consists of –
- Consumer intrinsic: These factors are – personality traits, cultural values and attitude towards social issues.
- Consumption specific: These are – specific attitudes and preferences such as the benefits sought in products and services and attitudes regarding shopping.
The bases for segmentation are discussed next. Now, in reality, marketers have used not only a single segment. They are using multiple bases. However, demographics and lifestyles are mostly used bases for segmentation. The psychographic classification of consumers includes their demographics classification. Therefore, demographic classification determines consumer needs for products and the ability to buy them. Whereas psychographic classification determines buyers purchase decisions and choices.
Now, we are going to learn different bases for segmentation. Have a look –
Demographic segmentation is dividing the consumers according to age, gender, ethnicity, income, occupation, marital status, and geographical segmentation.
Age is a key factor in marketing. Because Product needs vary on the basis of consumers’ age.
Products and services are varying because of gender. Like – male, female and child tastes and preferences.
- Families and households
There are many families; they pass through their formation, dissolution, and growth. However, family units need different types of products and services.
- Social class
Income is the main factor that distinguishing between market segments
Marketers divide their segment on the basis of cultural heritage and ethnicity. This is because; there are so many people who share the same values, beliefs, and customs.
A person where he lives determines some aspects of consumer behavior. Here, the climate is the best example of it. Because it decides which types of clothing you will wear.
- Green consumers
They are very attractive prospects for many products and services. That’s why marketers have explored targeting them. However, there are three types of consumers.
- Environmental activists
- Organic eaters
Another study found four major types of green consumers.
- True greens
- Donor greens
it also divides into two categories.
- Learning greens
- Non- greens
- Personality traits
This is the psychographic factors that are overlapped with personality traits or characteristics.
- Psychographics, values, and lifestyles
These are consumer’s activities, interests, and opinions.
- Benefit segmentation
Usually, consumers seek to benefit from products and services. It is their unfilled needs. However, if any brand can fulfill this, they become loyal to these brands. We can see these types of segmentation in personal care products such as shampoos, soaps, toothpaste. Now, toothpaste is the best example of it. Besides, it can classify into four categories.
- Long lasting fresh breath
- Plague and gingivitis protection
- Sensitivity reliefs
- Tooth whitening
- Media based segmentation
Marketers must consider the communication tools in which they can directly interact with the consumers. Like – Facebook, Twitter, newspaper, magazine, YouTube, etc.
- Usage rate segmentation
This is the differences among heavy, medium and light users and nonusers of specific goods, services or brands.
However, after studying it, we clearly understand the different bases for segmentation. This is really important for marketers for targeting their customers.