Segmenting Consumer Markets Research Assignment Paper

Segmenting Consumer Markets
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Segmenting Consumer Markets
Market segmentation is the practice apportioning a market into different customer segments (Suttle, 2017). Therefore, market targeting necessitates deciding which customer segment the producing or supplying company should concentrate on (Ferrell, & Hartline, 2013, p. 135). Market segmentation and targeting are both important factors a company should have to ensure that they are successful in their respective industry. Several variables can determine market segments such as age, sex, religion and nationality among others. However, there are four main bases for consumer market segmentation; they include behavioral, geographic, psychographic, and demographic segmentation. Demographic segmentation divides the market into clusters of variables such as age, sex, wages, tutelage, ethnicity, profession, religion, family size, and nationality (Gilligan & Wilson, 2009, p.346). This base of segmentation is the most popularly used as the needs and wants of people often fluctuate depending on these demographic factors (Ferrell, & Hartline, 2013, p. 136). Companies that utilize this segmentation include toys, clothing, food, beverages, and many other companies. Furthermore, these factors are easier to measure when initiating a new product or conducting a survey (Ferrell, & Hartline, 2013, p. 137). Geographic segmentation refers to the divvying of the market according to their geographic units such as countries, regions, cities and even residential. This technique is usually applied to newspaper companies as different regions have different needs to be catered for, such as weather and local politics (Ferrell, & Hartline, 2013, p. 139). The main factors that influence geographic segmentation include climate, topography, population density, and natural resources. Psychographic segmentation differs from all the others as it entails concentrating on personal and lifestyle qualities. It focuses on the product and buying activities of the consumers concerning their lifestyle and personality (Ferrell, & Hartline, 2013, p. 138). Finally, behavioral segmentation divides the market into groups on the base of comprehension, opinion, ...