Basis of Market Segmentation : 2023

Basis of Market Segmentation

        In this article we are going to study in detail what are the basis of market segmentation. From this article you will get the types of market segmentation and its basic information. Which will help you to get the necessary information about marketing. So let's see what are the basis of market segmentation.

    The basis  of market segmentation are as follows

    Basis of Market Segmentation : 2023
    Basis of Market Segmentation : 2023

    Market segmentation is based on these four bases. The detailed explanation of this basis is as follows:-

    A) Market segmentation based on population

        Market segmentation is an important step in marketing, in which population is considered an important factor. The market is divided on the basis of population. They are as follows:-

    1) Inflow of customers

        Market segmentation requires the presence of customers in the market. If there is no demand for goods and services in the market then it is not possible to classify the market. Therefore, market segmentation is necessary to gain access to customer markets.

    2) Consumer literacy

        Customer education plays an important role in market segmentation. Because when the customer is using the market, it is important for him to be educated. If he is uneducated, he is seen making purchases by copying other customers in the market. Therefore, if the consumer is educated then he buys the product according to his opinion. This promotes market segmentation.

    3) Social level

        Every customer is the king of the market, so customers are seen purchasing good goods and services to maintain their quality level. Therefore, customer is an important basis of market segmentation.

    4) Family structure

        Market segmentation is also based on family members. Because the number of members in the family, preferences of members, standard of living, willingness to spend money, habits of members, awareness of advertising, innovation among members, all these factors influence the market.

    5) Age limit

        Age range is the most important factor in market segmentation based on demographics. Because there are people of different age groups in the market. That is, children, teenagers, young generation, adults and elderly are the general age order. And these are the people we see acting as consumers in the market. And they demand goods and services according to their age range, hence age range of population is also important in market segmentation.

    B) Customer based Market Segmentation

        Market Segmentation In a market, customers are the fundamental pillar of buying and selling of goods and services. Every product is created from the customer's point of view. Therefore, there is a basic factor for customer market segmentation which is as follows:-

    1) Behavioral change

        Consumer behavior is the basis of consumer marketing. Consumer behavior depends on their preferences, lifestyle changes, lifestyle changes, product differentiation. If there is a change in all these aspects then market segmentation begins.

    2) Option

        Market segmentation is influenced by consumer preferences. Because as consumer preferences change, the positioning of the product in the market also changes. It helps in market segmentation.

    3) Attraction

        Attraction is considered the centerpiece of consumer marketing. Because of the goods and services towards which consumers are attracted. The same goods and services create their own distinct position in the market. Therefore, consumers' attraction towards goods and services becomes the basis of market segmentation.

    4) Experiences and beliefs about the object

        After coming to the market to buy goods and services, the consumer buys similar goods and services. The product that gives satisfaction can be called the customer's experience and trust towards that product. He knows what is good for our consumption and what is useful. If customers have experience and trust about each such product and service, then large-scale sales of that product is the basis of market segmentation.

    C) Market segmentation on the basis of social system.

        Society is considered to be the biggest and fundamental factor for market versus segmentation. The process of market segmentation depends on many multidimensional factors of the society which are as follows:- 

    1) Location

        Location is an important step in market segmentation. Its demand and supply policy of the producer is obtained from the location of the population living in the society. For example, we see a difference between the demand in Kashmir and the demand of people living in Dubai. Because markets are largely divided according to the location in that society.

    2) Customs and practices

        Every society has its own customs and traditions. In a society where there are customs and traditions, consumers demand the same goods and services in the market and due to this, market segmentation is possible.

    3) Righteousness

        Altruism in society leads to market segmentation. India is a very diverse country. There is demand for goods in the market according to every caste, religion and race. People believe everything according to religion. Religion is a market demand from customers, so religion also leads to market segmentation.

    4) Festivals, celebrations and diversions

        Festivals and festivals are celebrated in different ways in every religion. This leads to market segmentation. For example, people of Hindu religion celebrate festivals like Ganeshotsav, Diwali, Dussehra. That is why people of Muslim religion celebrate Eid etc. We see them celebrating festivals. At such times these people buy different goods and services.

    D) Market segmentation based on geography

        For market segmentation, geographically, the consumption pattern of the consumer depends on the environment where he lives. And these markets are shaped by consumer demand. They are as follows:-

    1) Diet

        Food is a basic component of human needs and varies from place to place. Like, Maharashtra – wheat, jowar, millet and people of Deccan region – rice.

    2) Weather

        Consumer goods are decided according to the season. Like, monsoon – umbrella, summer – cold drinks, winter – warm clothes. According to this the market is divided.

    3) Population size

        Market segmentation process is also a process based on population size. We cannot divide big markets in villages. But this can be done in urban areas, because population factors have to be considered from all sides.

    4) Customer Mindset

        Geographically, the purchasing mindset of each customer varies according to the environment in which they live. Consumer mindset contributes to market segmentation. Thus all these basic structures give rise to market segmentation. In marketing it is also possible to divide the market based on market conditions from a specific segment.

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