Segmentation: Concept and Basis

Segmentation in marketing refers to the process of dividing a broad market into distinct, homogeneous, or similar subgroups or segments based on specific criteria, characteristics, variables, or dimensions. The objective of segmentation is to identify, analyze, understand, target, or serve diverse groups of consumers, customers, or users with differentiated, tailored, or customized strategies, offerings, messages, experiences, or solutions that resonate, satisfy, engage, or address their unique needs, preferences, behaviors, or attributes more effectively or efficiently.

Basis of Segmentation:

1. Geographic Segmentation: Dividing the market based on geographical, regional, territorial, urban, rural, climatic, or locational factors, characteristics, or variables such as location, region, city size, population density, climate, or topography.
2. Demographic Segmentation: Segmenting the market based on demographic, socio-economic, or population variables, characteristics, or attributes such as age, gender, family size, life cycle stage, income, occupation, education, religion, race, nationality, or social class.
3. Psychographic Segmentation: Dividing the market based on psychographic, lifestyle, personality, values, attitudes, interests, opinions, motivations, or behavioral variables, characteristics, or attributes such as lifestyle, personality, activities, interests, opinions, values, motivations, or behavioral patterns.
4. Behavioral Segmentation: Segmenting the market based on behavioral, usage, purchase, consumption, loyalty, engagement, or interaction variables, characteristics, or attributes such as occasions, benefits, user status, usage rate, loyalty status, readiness stage, purchase decision process, or engagement level.
5. Benefit Segmentation: Dividing the market based on specific benefits, solutions, needs, problems, or outcomes that consumers, customers, or users seek, desire, prioritize, value, or expect from products, services, or offerings such as convenience, quality, price, features, performance, durability, safety, reliability, status, image, or sustainability.
6. Usage Segmentation: Segmenting the market based on usage, application, or consumption patterns, frequencies, or intensities related to products, services, or offerings such as heavy users, light users, non-users, potential users, or former users.
7. Attitudinal Segmentation: Dividing the market based on attitudes, perceptions, beliefs, preferences, emotions, or sentiments that consumers, customers, or users hold, maintain, or express toward products, services, brands, experiences, or offerings such as loyalty, trust, satisfaction, dissatisfaction, advocacy, resistance, or indifference.

By applying segmentation, businesses can identify, analyze, prioritize, target, or serve specific segments, niches, or groups of consumers, customers, or users with differentiated, relevant, or personalized strategies, initiatives, offerings, experiences, or engagements that enhance, optimize, or maximize their market opportunities, penetration, share, growth, profitability, satisfaction, loyalty, retention, or value creation in diverse, dynamic, or evolving market landscapes.