Market Segmentation

• What is market segmentation?

  The process of dividing a market of potential customers into groups, or segments, based on different characteristics
• What are the types of market segmentation?

  • age
  • gender
  • occupation
  • lifestyle
  • location
  • income
• What is the need for market segmentation?

  Customers may vary because of the:

  • benefits they require
  • amount of money they are able and willing to pay
  • quantity and quality of goods they require
  • time and location they wish to purchase the goods
• What are the benefits of market segmentation?

  • ensures customer needs are matched and met
  • potential for increased profits (more sales means they can cover their costs)
  • increases customer retention
  • allows for targeted marketing
  • potential for an increase in market share