Segmentation

A single product may not be consumed by all. There are very few generic products like Salt which is
consumed by everyone without any differentiation. But this may not be true in all the cases. And
also marketer since has limited resources, cannot fulfil requirements of all the consumers who have
different demands, thus marketer had to select a particular segment. Segmentation is defined as
segregating a particular set of customers having similar demand and share similar characteristics.

Segmentation can be on basis of Geography, Demography, Psychograph, behavioral, etc...

Geographic Segmentation

Geographic segmentation implies dividing market into different segments such as nations, states,
districts etc... In context of India marketers need to segment the market in terms of North India,
South India and so on because the tastes and demands differ a lot. There is difference ion Climatic
conditions, the food habits, the cultures etc... Thus Haldirams has different variants of its snacks or
North Indian states and different for South Indian States.

Also the markets can be segmented based on Rural and Urban markets. The marketers launch their
product in different packages and different variants in Rural and Urban markets. For instance most
of the FMCG firms like HUL and P&G launched their shampoos in very small sachets in rural markets.
Also their marketing campaign differs in both the segments.

Demographic Segmentation

The customers can be segregated based on different demographic factors too

Age

Based on age the customers can be segmented as Infant, Child, Youth, Middle Aged and Old. Each
age group has different sets of requirements with different habits and needs to be targeted
differently. For Instance the Old aged customer will be more conventional and risk averse and would
be demanding healthy food and a youngster would prefer modern trend and is risk taking and will
also prefer junk food. Thus Sanskar and Aastha TV target Old aged people and MTV target
Youngsters and Cartoon Network and Pogo TV target Children.

Life Stage

Life stage implies the stage of life of the customer. He may be married, or is a grandfather, or is at
stage of searching for employment or is taking care of his old parents. The customer can be
segmented on this basis too. Especially in case of women their role differs a lot based on their role
played. Thus it becomes per se necessary to segment based on this criterion.

Income
Income is also one of the vital bases of segmentation. Marketer can segment based on Income level
and position its products to target specific income group. For Instance HUL targets Lower Income
group with Life Buoy and Liril; Middle Income group with Lux and Higher Income group with Dove.
This segmentation is also used in case of price differentiation between discounted stores and
premium stores. Pantaloons have a Showroom targeting higher segment and Factory Outlets to
cater needs of lower income.

Social Class

Consumer eats food, wears clothes and uses products based in his social class to. A manager wears
luxury suits, drives in a Mercedes and uses Gucci Perfumes and a Labour wears cheaper clothes,
rides bikes and scooters and uses talcum powder. Thus customer can be segmented based on roles
played by them and their social status.

Gender

Gender becomes one of the most important parameter of segmenting markets. Most of the
marketers use this basis. The cosmetics, apparels, healthcare etc uses this kind of segmentation. For
instance Hero Honda launched its Pleasure specifically targeted to Young Girls. Axe promotes its
products focusing on male Youth. Himami’s fair and Handsome is made specifically for Make youth.

Psychographic Segmentation

In this buyers are divided into different segments based on their personality, psychological traits, life
style etc... A customer could be trend adopter, trend follower or a trend setter. He can be Achiever,
Follower, Risk Averse, and Extrovert, Judgemental etc... Thus based on once lifestyle and values the
market can be segmented. For Instance Toyota Innova segmented market based on values and
targeted an individual who has values for his family. Also Mountain Dew focuses on Adventurous
customers.

Behavioural Segmentation

Apart from the above discussed factors, a marketer also uses behavioural factors to segment the
market.

Occasions

Market can also be segment based on various occasions. For instance Christmas, Diwali, Mothers
day, father’s day Valentine’s Day etc... In a country like India with many different religions and
customs, marketer also uses this basis for segmenting the market. For instance Hallmarks cards and
Archie’s Uses this basis. Also Cadbury segments the market based on various festivals and occasions
like First day of month to promote its product, “Diary Milk”.

Benefits

Customers can be grouped based on the benefit they arrive from using the product. For instance
some use cool drinks for the purpose of quenching thirst and some for treating guest and others for
hanging out. Thus Companies like Pepsi and Coca Cola targets different customers for different
products promoting different purposes. Also Shampoos have different benefits for different
customers. For Instance P&G’s Pantene is promoted for Silky and Shining hair, Garnier’s silk and
Strong for Strong hair and head and Shoulders for Dandruff free hair.

Others

Apart from the above discussed factors, the buyer can be segmented based on different behavioural
factors like Usage rate (frequent user, medium user, low usage etc...), user Status (first time user,
replaced user, secondary user, buyer, influencer etc...0 and also Loyalty status (Hard Core loyal,
Switcher, Shifting Loyal and Split loyal).

Conclusion

Thus as a marketer one must be able to segment the market in an appropriate way and should
target relevant market and finally position his product in a way most appealable to the targeted
segment. A segment must be measurable, approachable, substantial, differentiable and also
actionable.