Explain Briefly The Important Bases For Segmenting Markets (2 Marks)?


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These are the basis for segmenting any market. Try them


  Key variables concern age, sex, occupation, level
  of education, religion, social class, and income
  characteristics, many of which determine a potential
  buyer’s ability to purchase a product or service.
Lifestage   Lifestage analysis is based on the principle that
  people need different products and services at
  different stages in their lives (e.g. Childhood,
  adulthood, young couples, retired).
Geographic   In many situations the needs of potential customers
  in one geographic area are different from those in
  another area. This may be due to climate, custom,
  or tradition.
Geodemographi   This approach to segmentation presumes that there
  is a relationship between the type of housing and
  location that people live in and their purchasing


Psychographic lifestyles     Analyzing consumers’ activities, interests, and
opinions, we can understand individual lifestyles
and patterns of behaviour, which in turn affect their
buying behaviour and decision-making processes.

Benefits sought   On this basis, we can also identify similar product
and/or media usage patterns.
By understanding the motivations customers derive
from their purchases it is possible to have an insight
into the benefits they seek from product use.


Purchase/transaction   Data about customer purchases and transactions
provides scope for analysing who buys what, when,
how often, how much they spend, and through what
transactional channel they purchase. This provides
very rich data for identifying ‘profitable’ customer
Product usage   Segments are derived from analysing markets on the
basis of their usage of the product offering, brand, or
product category. This may be in the form of usage
frequency, time of usage, and usage situations.
Media usage   Data on what media channels are used, by whom,
when, where, and for how long provides useful insight
into the reach potential for certain market segments
through differing media channels, and also insight
into their media lifestyle.

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