Maximizing Market Success: An Overview of 4 Key Segmentation Variables for Consumer Markets

Major segmentation variables for consumer markets (4)

geographic, demographic, psychographic, and behavioral

Segmentation is the process of dividing the target market into smaller and more defined groups. This approach is used by businesses to customize their marketing mix strategies to meet the needs and preferences of different consumer groups. Here are four major segmentation variables for consumer markets:

1. Demographic Segmentation: This is the most common way to segment consumers. Demographic factors include age, gender, income, education, occupation, and marital status. Demographic segmentation can help businesses identify specific needs and preferences of their target markets. For example, a business might target their marketing efforts at retirees, who may have different needs and requirements compared to young adults just entering the workforce.

2. Psychographic Segmentation: This approach segments consumers based on their personality traits, lifestyle, values, and social class. Psychographic segmentation can reveal detailed information about consumers’ attitudes, interests, and behaviors. This information can inform a business’s marketing strategies and help them create a more targeted message.

3. Behavioral Segmentation: This segmentation approach categorizes consumers based on their purchase behavior, loyalty, and usage rate. For example, a business might segment its customers by the frequency of purchase or the amount spent on their products and services. The insights gained from Behavioral Segmentation can help businesses tailor their customer relationship management (CRM) efforts to retain their most loyal customers and encourage new customers to try their products and services.

4. Geographic Segmentation: This approach targets customers based on where they live or work. Geographic segmentation considers factors such as country, region, city, zip code, and climate. Geographic Segmentation can help businesses understand the cultural influences, economic conditions, and product preferences of consumers in different areas. For example, a fashion retailer may offer different seasonal clothing combinations for people living in cold climates compared to those living in warm climates.

More Answers: