Monday, 2 November 2015

Segmentation Model: Types of Segmentation

Segmentation Model

Segmentation model helping tool for develop database that provide calculations and rankings for identified critical elements that are necessary for meet companies objective within a particular segment.
Company do segmentation because:
  • For meet company's objective, like, sales growth and profit.
  • To determine the necessary calculations,  grouping and ranking of all customers.
  • To identify which of customers are most valuable in the attainment of your objectives.
  • Developed and executed properly, provides a very clear understanding to the target group, What the objectives are, how the model work

Type of market segmentation

Geographic segmentation

Segmentation by Geographic criteria, Like, Nations, Stat, regions, city, etc. Demographic data with geographic data to create a more accurate profile. For example, KFC, Started to add vegetable dish in menu. With respect to region, in rainy regions merchants can sell things like raincoats, umbrellas, in hot regions, can sell summer clothing.  Small or local merchant can sell product cording to local people preference.  

Demographic segmentation

Segmentation can be done by on basis on age, gender, occupation and education level etc. for example, sport bike target youngsters, luxurious  car target business men/ top level executives. Demographic segmentation divides markets into different life stage groups and allows for messages to be tailored accordingly.

Behavioral Segmentation

Segmentation can be done on basis of knowledge, attitude, usage rate, responses, status, etc. Marketers believe that behavior variables are the best starting point for building market segments.

Psychographic segmentation

Segmentation can be done by on basis of lifestyle, interests, opinions of customers. It considers how people spend their leisure (relaxation ). Psychographics are very important to segmentation, because psychographics identify the personal activates and targeted lifestyle the target subject endures. or image they are attempting to project.


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