Consumer Market Segmentation - Explained
How do we Segment Consumer Markets?
Written by J. Mance Gordon
Updated at April 17th, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
How do we Segment Consumer Markets?
Market segmentation involves breaking it down into different groups or different segments that are the same as each other but different from others well.
Below are some examples of Consumer Market Segments.
Behavioral Segments
One is approach to market segmentation involve consumer behavior. That is, how often do they purchase, how much do they purchase, and which particular products do they purchase? In other words, those are all different behaviors that consumers engage in.These are all good ways for us to to break out different segments
Geographical Segments
Another way we can break down the market into different segments is by geography. We can split it up by region or state or whatever makes sense. It might be different towns within a small region that we operate in. Either way, if geographic differences are meaningful to our consumers or our product, then that's a good way to segment the market.
Demographic Segments
Lastly a very common basis for segmenting the market is demographics. This is because these things not only make consumers similar but it tends to affect the sorts of things that they purchase or the ways they respond to advertisements. So, consumer ages or income levels or levels of education or ethnic or cultural background. All of those things affect the way consumers might respond to our marketing mix or our marketing strategy.
So demographics geography and consumer behavior are all different things that we could look at when we figure out how we should segment our consumer markets.
Related Topics
- What is a Market?
- What is Target Marketing?
- What is Market Segmentation?
- How Many Segments to Target?
- How Do We Segment Consumer Markets?
- Benefit Segmentation
- How Do We Segment Business Markets?
- Using Data for Market Segmentation
- Buying Power Index
- What is Customer Relationship Management?
- What is Behavioral Targeting?
- What is Positioning?
- What is a Positioning Statement?
- What is a Perceptual Map?
- Cultural Factors Affecting Marketing
- International Marketing is Challenging