Segmentation

• Segmentation


  The process of splitting customers within a market into groups with common characteristics
• Ways to segment a market


  • Demographic
  • Geographic
  • Psychographic
  • Behavioural
• Advantages of segmentation

  -Promotional activities can be targeted to customer

  -The needs of customers can be better understood
• Disadvantages

  -Hard to predict customer behaviour due to it changing overtime

  -it can be hard to successfully reach the segment of target market