Market Segmentation

Segmentation is the process of breaking down the product market into groups.

General used groups for market segmentation studies:

Product Use – personal or professional/commercial service

Buying Situation – new purchase, repeated buying.

Purchasing Method – Internet, contract, direct payment, financing.

Customer Type – government, non profit, wholesaler, retailer, end user.

Geographic Location – country, city/region (urban/rural); city size/region size (population); region climate (hot, cold, beach, mountain).

Demographics – income level, gender, age, family size, personal status (single, engaged, married, divorced, with/without kids), education (high school, college, postuniversitary degree. Ph.D.), job (unemployed, housewife, part-time employed, freelancer, full-time employed, student retired), religion, race (white, black, asian, hispanic, mixed race etc.), nationality.

Psychographics – lifestyle (opinions, preferences, values, interests, passions, hobbies); personality traits (friendly, respectuos, sincerity, conservative, sophistication etc.)

Behavior – Attitude toward product/service (hostile, negative, indifferent, positive, enthusiastic); needs; benefits (quality, price level, point of sale convenience, delivery speed); user status/loyalty (nonuser, potential user, first time user, one time user, regular user, ex user).

Brand Awareness – unaware, aware, well informed (interested).

Support Needed – one time, repeated, regular/long time.