Four Types of Market Segmentation

It is important to use different types of market segmentation. There are four types of market segmentation and it is important to target customers using unique characteristics for each segment as this raises competitiveness and create better marketing campaigns and make market opportunities better for the business organization. Market segmentation is necessary because it makes it easy to focus on the market through dividing it into segments and focus on the resources that enable the company to reach the most valuable scales of audience and this helps achieving the business targets. The four types of market segmentation include the demographic segmentation, psychographic segmentation, behavioral segmentation and geographic segmentation. Each type of the four types requires different work from the business organization that is going to penetrate the market. Demographic market segmentation depends on addressing certain ages, gender, income, family situation, location, annual income and education of customers and making deep analysis on these issues and collecting data related to them. This technique can help the company understand the audience it is addressing and can target the audience it can make good sales from, for example, car companies that sell expensive cars should focus on people whose income is high enough to purchase such products while companies that sell candies and gum should focus on families that have children and no matter their income is because the product is not expensive. Demographic segmentation provides accurate data and information. Psychographic segmentation yet depends on categorizing the audiences and the customers according to the factors that are relevant to their personalities and features. The psychographic segmentation depends on studying values, personality traits, lifestyles, interests, motivations, priorities, psychological influences and attitudes of customers. These factors are difficult for the organization to identify than others but they are very important because they can shed the light on the needs of customers and how to meet them. The company that sells cars for example can here focus on values and interests of customers rather than their incomes in order to develop products that match these values and interests. Behavioral market segmentation depends on the purchasing habits and behaviors of customers and how they spend their money as well as the status of customers who buy the items. Geographic segmentation depends on segmenting customers based on the geographic borders they belong to and where they live. This should include collecting information about the country where the company is going to penetrate and market products, the ZIP codes of customers, the climate of the place, the status of urban and rural areas in the country and the city where the product is to be sold. This is very necessary when the company is going to penetrate a new market with new products as innovation can help the company develop its products to suit the people of that area in particular based on geographic issues. An example is when to market new types of wine in countries that religiously don't support drinking wine such as Islamic countries as this may not be easy to market such products and there should be innovative ideas for doing this.