Answer to Question #234877 in Management for Toinette Mostert

Question

Discuss the concept ‘Market segmentation’, including the types of segments. 10Marks

Answer 1

Market segmentation is a promotional technique that identifies specific groups of customers to sell certain items or product lines to them in a manner that is beneficial to their objectives. Market segmentation may be seen in everyday items, promotions, and advertisements. Automakers subsist on their aptitude to identify market groups accurately and develop goods and promotional tactics that connect to those categories. There are four types of market segmentation.

To begin, one of the most prevalent types is demographic segmentation. It refers to segmenting audiences based on visible, person-to-person distinctions. Age, gender, relationship status, family size, employment, education level, income, race, region, and religion are some characteristics. Second, one may segment the market based on customer behaviors, particularly those related to the product. By segmenting the audience depending on their behaviors, one may design a message that caters to those habits. Many of the activities they may examine are related to how people engage with their product, website, app, or brand. Third, geographic segmentation, which divides a market depending on its geography, is a simple yet effective segmentation method. The location of a consumer may assist one better identify their demands and enabling them to send out position advertisements. Finally, Psychographic segmentation is concerned with more psychological and emotional aspects. These characteristics may not be as apparent as demography, but they may provide important insight into their target audience's motivations, choices, and requirements. Realizing these audience features can aid in the creation of material that more successfully appeals to them. Personal qualities, preferences, beliefs, ethics, dispositions, and behaviors are elements of psychographic qualities.