Market Segmentation

Identifying the target market and market segmentation are two sides of the same process.

Through the process of sub-dividing (segmenting) the mass market into definable groups who share similar characteristics, a business can determine their specific target market. 

Variables to segment the mass market :

• Demographic: income, education, occupation, age, gender

• Geographic: urban, suburban, rural, residence type

• Psychographic: lifestyle, interests, self-conception, sub-culture

• Behavioural: buying behaviour, brand loyalty

Purpose: 

• To increase sales, market share, profitability by understanding and responding to needs of target market.  

• To make marketing activities cost effective - minimising marketing spend getting your message to the right person at the right time.