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Segmentation Definition and it's Four Major Variables


What is Segmentation?

Segmentation is dividing the consumer buyers into small pieces to better understand its nature. The goal of the segmentation is to find a niche customer base to introduce and ultimately build brand loyalty towards your product. There are four major variables or market segments which are Geographic, Demographic, Psycho graphic and Behavioral. These four segments are divided into more pieces to get into the core of consumer buying behavior.

Geographic Segmentation:

As the name suggests geographic segmentation is splitting the buyers based on geographical location. The goal here is to find out where your consumers are potentially living and how many potential customers are there in a specific location. 
Geographic segmentation variables:
  • World region or country
  • Country region
  • City or Metro size
  • Density 
  • Climate


   Demographic Segmentation:

Demographic segmentation refers to dividing the buyers based on the structure of the population of certain location. As you have guessed it is done after geographic segmentation. You have to remember we are trying to find a niche market. So after we decide which geographic locations we are targeting, we have segment our market based on age, gender, family size, family type, education, occupation etc.

Demographic segmentation variables:

Age, Gender, Family size, Family life cycle, Income, Occupation, Education, Religion, Race, Generation, Nationality. 



 

Psycho-graphic segmentation:

Psycho-graphic segmentation is dividing the buyers based on psychological attributes of the intended customer base. The goal here is to finding out the personality and lifestyle that our target consumers shares. This is why the market is divided into different attributes like Social class, lifestyle, and personality.   



Behavioral segmentation:

Dividing the buyers into different segments based on their user status, user rates, loyalty status, Readiness stage and attitude toward product is behavioral segmentation. Many types of buyer are identified by behavioral segmentation like occasional users, regular users, ex-users, heavy users, enthusiastic and potential users, aware and unaware users etc. The target here is to find out the most loyal and least loyal customer so that we can motivate the consumers by different incentives. Also it helps to find new customer base and attract them towards our offering.

 
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