Market Segmentation

• market segmentation


  the process of splitting a business' target market into different groups. businesses use these groups to make it easier for them to develop products aimed at certain people and to help them target their marketing.
• geographical segmentation


  splitting up a market by location. a business may choose to target customers in its local area, or it may consider what types of products would sell in specific locations
• demographic segmentation


  considers the characteristics of people. these characteristics may include age, gender, race, religion, nationality, disability, ethnicity, sexual orientation and occupation.
• behavioural segmentation


  considers how people behave in relation to purchases at different times of year and in different situations.
• lifestyle segmentation


  considers what sorts of lives the people in a business' target market lead. this may take into account hobbies, sporting interest and other things customers do in their spare time
• income segmentation


  considers how much people earn and how much disposable income they have
• market mapping


  the process of using a graph to plot competitors and their products to understand competitor behaviour and spot a gap in the market. it also allows a business to see who their competition will be and what other products and services are available in the same sector. an entrepreneur can use a gap in the market to help them launch a product or service that is more likely to be a success.