What types of variables are used for market segmentation?
The factors which are be used to segment a market are the segmentation variables. Common variables include demographic, geographic, psychographics and behavioural considerations. Quantifiable population characteristics, such as age, gender, income, education, family situation.
What are the 4 market segmentation variables?
Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types. Here are several more methods you may want to look into.
What is market segmentation and its variables?
Market segmentation typically involves forming groups of similar people. The characteristics of people that are used to determine if the people are similar are called segmentation variables. For example, if segmenting a market is based on the age of people, then age is the segmentation variable.
What are the 5 variables for segmentation?
The five basic forms of segmentation are demographic (population statistics), geographic (location), psychographic (personality or lifestyle), benefit (product features), and volume (amount purchased). Business markets may segment based on geography, volume, and benefits, just as consumer markets are.
What are marketing variables?
Definition. Marketing decision variables correspond to the major marketing functions that influence revenue and profit. They are summarized in the well-known Four P’s: product, price, promotion, and place (distribution). Other marketing decision variables may include service policies, credit, and so forth.[1]
What are the 4 types of market segmentation with examples?
For example, the four types of segmentation are Demographic, Psychographic Geographic, and Behavioral. These are common examples of how businesses can segment their market by gender, age, lifestyle etc….This can be defined in any number of ways:
- Country.
- Region.
- City.
- Postal code.
What are the bases of market segmentation?
The four bases of market segmentation are:
- Demographic segmentation.
- Psychographic segmentation.
- Behavioral segmentation.
- Geographic segmentation.
What are the 7 market segmentation characteristics?
Market Segmentation: 7 Bases for Market Segmentation | Marketing Management
- Geographic Segmentation:
- Demographic Segmentation:
- Psychographic Segmentation:
- Behavioristic Segmentation:
- Volume Segmentation:
- Product-space Segmentation:
- Benefit Segmentation:
What are examples of segmentation variables?
Demographic segmentation variables
- Age. Age is the most basic variable of them all, albeit the most important because consumer preferences continually change with age.
- Gender. Men and women generally have different likes, dislikes, needs, and thought processes.
- Income and occupation.
- Ethnicity and religion.
- Family structure.
What are bases of market segmentation?
What are the basic marketing variables?
product, price, promotion and place (distribution) – that the firm blends to produce the desired market response; also called the Four Ps.
What are variables in marketing research?
Market research:value that changes as a result of direct intervention ( independent variable) or a change in another variable ( dependent variable) A variable may be numerical or classificatory, such as gender. In this example, offer and copy are independent variables, and response is the dependent variable.
How is market segmentation used in market research?
The State of AI in Market Research (eBook) Market segmentation is a marketing technique that involves segmenting a target market into smaller, more defined segments, enabling a business to conduct strong market research into customers.
Which is an example of price segmentation in business?
Price segmentation is common and widely practiced. Variation in household incomes creates an opportunity for segmenting some markets along a price dimension. If personal incomes range from low to high, the reasoning goes, then a company should offer some cheap products, some medium-priced ones, and some expensive ones.
How is behavioral segmentation different from demographic segmentation?
While demographic and psychographic segmentation focus on who a customer is, behavioral segmentation focuses on how the customer acts. Behavioral segmentation requires you to know about your customer’s actions. These activities may relate to how a customer interacts with your brand or to other activities that happen away from your brand.
Which is the best example of Geographic segmentation?
Geographic segmentation can refer to a defined geographic boundary (such as a city or ZIP code) or type of area (such as the size of city or type of climate). An example of geographic segmentation may be the luxury car company choosing to target customers who live in warm climates where vehicles don’t need to be equipped for snowy weather.