FOUR MAIN T YPES OF
MARKET
SEGMENTATION
Market segmentation is the process of dividing a target market into
approachable groups based on wants, needs, common interests,
common behaviors, and demands.
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Divides a market by
demographic factors
such as age, education,
income, gender,
occupation, ethnicity,
family size, and
nationality.
Age
Education
Income
Gender
Occupation
Ethnicity
Family size
Nationality
DEMOGRAPHIC
SEGMENTATION
Divides the market
based on geographical
location, climate, or
population density.
GEOGRAPHIC
SEGMENTATION
Similar to demographic
segmentation, but
unlike demographics
which provides basic
information about
customers, psychographics
takes into account the
psychological aspects of
behavior such as values,
opinions, personality traits,
a itudes, lifestyle, hobbies,
beliefs, fears, and interests.
PSYCHOGRAPHIC
SEGMENTATION
Divides markets based on
customer behaviors and
decision-making pa erns.
BEHAVIORAL
SEGMENTATION
1 2 3 4
Location
Climate
Needs
Preferences
Interests
Values
Opinions
Personality
traits
A itudes
Lifestyle
Hobbies
Beliefs
Fears
Interests
Purchasing
habits
Consumption
Brand loyalty
Lifestyle
Product
usage
Source:
Introduction to Business
Heidi M. Neck, Ph.D.
Christopher P. Neck, Ph. D.
Emma L. Murray, BA, H. Dip
