Market segmentation is the practice of dividing a population into segments based on a variety of factors. These segments can then be targeted more specifically in terms of research and resulting marketing strategies. Benefits include being able to better satisfy wants and needs when focusing on a smaller population with similar characteristics but drawbacks include missing out on potential markets.

Demographic Segmentation is the practice of dividing the population into segments based on factors such as age, race, religion, gender, family size, ethnicity, income, educational level and socio-economic group.

Psychographic Segmentation is the practice of dividing the population into segments based on social class, attitudes, lifestyle and personality characteristics

Geographic Segmentation is the practice of dividing the population into segments based on the location where people live such as villages, towns, cities, countries and global regions.

Behavioral Segmentation is the practise of dividing the population into segments based on factors such as spending, consumption, habits, loyalty status and desired benefits.

Back to unit 6 homepage