MARKET SEGMENTATION

FACTORS INFLUENCING CUSTOMER DECISION

 GEOGRAPHIC CHARACTERISTICS
DEFINITION
The geographical characteristics of the different regions studied are presented in
Part II of this book, as well as the importance of their glacial landscapes. In addition,
these chapters explain how the glacial landscapes were discovered and their
knowledge advanced. Most of the glaciated regions of Europe have been included in
this book, with few exceptions.
IMPORTANCE
People living in the same area or region often have similar needs and requirements.
Certain products are made specifically for a purpose best suited to needs of the
people living in a certain region. Hence, geographic segmentation helps identify
those set of customers who are living in a particular region or area or place and also
have similar features like weather, climate etc.
Since the time marketing has started, adapting products to local needs has always
been top of the list. Geographic segmentation helps in knowing the target audience
better. A single product and services can be adapted to multiple geographies if the
segmentation is done correctly. Minor adaptations can go a long way in making a
product successful in multiple geographies. Adjustments to marketing mix as per
the geography can help the product sell better and provide more value.
Geographic segmentation is one of the four types of market segmentation. The
other three are demographic segmentation, behavioral segmentation and
psychographic segmentation.
EXAMPLES
There can be several way in which this topic can be understood. Certain examples
of geographic segmentation are:
1. Country- Sarees are sold in countries like India, flags are sold only in their
respective country etc.
2. Cities- Replicas of Eiffel Tower will be sold in Paris, products depicting Taj Mahal
will do well in Agra.
3. Villages- Companies doing sugar business can target villages growing
sugarcane, tea manufacturing companies can target tea farms.
4. Urban/ Rural- Hand pumps are required in rural areas, stores of premium watch
or car brands can be opened in urban areas
5. Climate and weather- Beachwear can be sold in areas close to the sea,
sweaters in cold regions, raincoats in areas receiving high rainfall, ice-creams in hot
regions
  PERSONAL ANG DEMOGRAPHIC CHARACTERISTICS
DEFINITION
Demographic segmentation refers to the categorization of the target market based
on specific variables like age, education, and gender. It is a type of market
segmentation that helps businesses to understand their consumers better and meet
their needs, effectively.
Demographic segmentation allows businesses to be more strategic and specific with
marketing. A one-fit-all marketing strategy will likely not appeal to every member of
your target market because different individuals have different preferences – what
appeals to Consumer A may not attract Consumer B.
By breaking your target market into individual categories defined by demographics,
organizations can come up with precise marketing campaigns for each group. This
helps them to channel resources effectively and boost return on marketing
investments.
WHY USE DEMOGRAPHIC SEGMENTATION?
Without demographic segmentation, it is nearly impossible to understand what your
customers want. Demographic segmentation helps organizations to categorize their
widely varied customer base into smaller groups of individuals and appeal to their
specific preferences.
With demographic segmentation, organizations can create personalized brand
narratives that easily connect with specific segments of the target market to
advertise and sell their product or service. Consumers easily identify with
personalized brand narratives and are eager to patronize organizations that reflect
this.
DEMOGRAPHIC SEGMENTATION VARIABLES
Age
This is an important factor for market demographic segmentation because
consumers' needs and preferences differ in line with their ages. That is, what
appeals to individuals in a particular age group may not appeal to members of a
different age group.
For instance, young adults typically favor digital marketing campaigns while older
adults usually prefer traditional marketing methods. More than marketing
strategies, knowing the age distribution of your consumers helps you to create
products that appeal to them.
Gender
The gender variable is another important demographic factor for market
segmentation because individuals identify with different points in the gender
spectrum like masculine or feminine, and this primarily affects their choices.
Knowing the gender your product appeals to helps you to meet the needs of your
consumers effectively.

One's gender identity often influences the general overview of the market, product
preferences, and differentiation. For example, men may prefer deodorants with a
strong fragrance while women may be more interested in deodorants with a mild
and alluring fragrance.

Income
Income levels also serve as an important demographic variable as it largely
determines consumer choices and perception on pricing. Individuals with higher
income levels may have an interest in purchasing ostentatious or highly-priced
items while individuals with lower income levels may desire cheaper items.
Income levels of the target market also determine the product pricing as you do not
wish to price yourself out of business. Organizations that deal with luxury items
typically target high-income customers who they know can afford them and they
price these items accordingly while organizations that trade in everyday items
prioritize affordability.
Educational Levels
The levels of education of your consumers play an important role in your marketing
strategy and product features. In advertising, for example, the educational level of
the target market determines the manner and channels you adopt in passing across
your message.
Also, the complexity of products and product features is largely determined by the
educational level of the target market. Complex product features may not appeal to
consumers with low to medium levels of education while extremely simple product
features may fail to capture the interest of a highly-educated audience.
Religion, Race, and Ethnicity
Religion influences the preferences of the target market and so, it is important to
know the religious categorization of your target market. Racial and ethnic
preferences and sentiments are also reflected in marketing campaigns and
advertorials for products and services.

Occupation or Job-Type
Categorizing consumers based on the occupation or job-types allows organizations
to create products for specific industries. Occupation segmentation can also help
divide groups of people into specific locations such as cities, suburbs, and rural
areas and is sometimes combined with income segmentation.
Family Structure
Societal family structures are important for demographic segmentation. In this
sense, societies with large families may desire low-income products that they can
purchase in bulk while societies with smaller families and predominantly single
people, may favor luxury purchases with flexible spending patterns.
Other demographic segmentation variables include Employment status, location,
marital status, and household income.

EXAMPLES OF DEMOGRAPHIC SEGMENTATION IN MARKETING

 Segmentation by Family: When marketing items like diapers and cereals,
organizations typically create advertisements that appeal to the traditional
young nuclear family structure – father, mother, and children.
 Segmentation by Location: If your product is restricted to a specific location,
this information will reflect on your marketing strategy. For example, in
crafting ads, you may use language that is peculiar to that environment.
 Segmentation by Gender: Adverts and market strategies are typically gender-
specific. For instance, when creating an advert for a lipstick brand or other
makeup products, organizations may create adverts that center women.

 SOCIAL AND PSYCHOLOGICAL CHARACTERISTICS