How Many Market Segments Are There?

What is the difference between segmentation and targeting?

Market segmentation is the process of categorizing the market into different groups, according to demographic, geographic, behavioral and psychographic traits.

The target market is the market segment that the business is focusing on for a specific product or marketing campaign..

How do you do segmentation targeting and positioning?

Follow the steps below to apply the STP Model in your organization.Step 1: Segment Your Market. Your organization, product or brand can’t be all things to all people. … Step 2: Target Your Best Customers. Next, you decide which segments to target by finding the most attractive ones.

What are the basis of segmentation?

The basis of the segmentation is age, sex, education, income, occupation, marital status, family size, family life cycle, religion, nationality and social class. All these variables are either used as a single factor or in combination to segment the market.

What are the segments?

Definition of segment. (Entry 1 of 2) 1 : a portion cut off from a geometric figure by one or more points, lines, or planes: such as. a : the area of a circle bounded by a chord and an arc of that circle. b : the part of a sphere cut off by a plane or included between two parallel planes.

What are the 4 types of market segmentation?

The four bases of market segmentation are:Demographic segmentation.Psychographic segmentation.Behavioral segmentation.Geographic segmentation.

What are the 3 target market strategies?

Three main activities of target marketing are segmenting, targeting and positioning. These three steps make up what is commonly referred to as the S-T-P marketing process.

What are the market segmentation strategies?

A market segmentation strategy organizes your customer or business base along demographic, geographic, behavioral, or psychographic lines—or a combination of them. … Market segmentation is typically divided into four groups: demographic, geographic, behavioral, and psychographic.

What are the 5 market segments?

What are the 5 Types of Market Segmentation? There are 5 ways to break down your customer profile into unique segments, including behavioral, psychographic, demographic, geographic, and firmographic!

What are the targeting strategies?

Targeting Strategy. The selection of potential customers to whom a business wishes to sell products or services. The targeting strategy involves segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment. … Also called targeting.

What are the 5 main different segments for demographics?

Demographic segmentation is the process of dividing your market into segments based on things like ethnicity, age, gender, income, religion, family makeup, and education. This helps brands spend their advertising and marketing budget more efficiently.

What are the 7 market segmentation characteristics?

Specific characteristics often used in demographics segmentation include age, gender, race, marital status, income, education and occupation.

What are your market segments?

A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes. … Marketing professionals approach each segment differently, after fully understanding the needs, lifestyles, demographics, and personality of the target consumer.

What are the 6 market segments?

This is everything you need to know about the 6 types of market segmentation: demographic, geographic, psychographic, behavioural, needs-based and transactional….DemographicAge.Gender.Occupation.Income.Family status.Education.

What is the purpose of market segmentation?

At its core, market segmentation is the practice of dividing your target market into approachable groups. Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioral criteria used to better understand the target audience.

How do you segment a market?

How to segment a marketStep One – Define the market. … Step Two – Create market segments. … Step Three – Evaluate the proposed market segments for viability. … Step Four – Construct segment profiles. … Step Five – Evaluate the attractiveness of each segment. … Step Six – Select target market/s.

What is market segmentation and its types?

Types of market segmentation. The consumer market can be segmented on the basis of following categories viz. geographic, demographic, consumer behavioral, psychographic, etc. The following are the most common forms of market segmentation practices.

What are the 3 types of market?

Types of Market Structures1] Perfect Competiton. In a perfect competition market structure, there are a large number of buyers and sellers. … 2] Monopolistic Competition. This is a more realistic scenario that actually occurs in the real world. … 3] Oligopoly. In an oligopoly, there are only a few firms in the market. … 4] Monopoly.