Types of market segments

   Types of market segment

Types of market segments: there are basically four primary categories or types of market segments

1.       Geographic
2.       Behavioral
3.       Demographic
4.       Psycho-graphic

• Geographic segmentation (where they live?): geographic segmentation involves dividing the market into different geographical units such as nations, states, regions etc. geographic market segments focuses on the location of customers. Customers in different geographical regions will have different needs, wants and demands. For instance mountain climbing equipment’s will be demanded very differently in areas where there are mountains and in areas where there are no mountains.

• Demographic segmentation(who they are?): In demographic segmentation, the market is divided into groups on the basis of variables such as age, gender, income, education, generation, religion. Demographic market segments are some the most popular ways for companies to segment its customers.one reason is that consumer needs, wants, usage rates and product and brand preferences are often associated with demographic variables. Another is that demographic variables are easy to measure. For instance income level may play a role if a company is selling high end luxury goods.

• Psycho-graphic segmentation (how they behave): psycho-graphics is the science of using psychology and demographics to better understand consumers. In psycho-graphic segmentation buyers are divided into different groups on the basis of psychological/personality traits, lifestyle, or values. People within the same demographic groups can exhibit very different psycho-graphic properties.

• Behavioral segmentation (why they buy): in behavioral segmentation, buyers are divided into groups on the basis of their knowledge of, attitude towards, use of, or response to a product. It basically divides customers based on their purchasing decisions.