Psychological Strategy: The Bases of Market Segmentation (Essay Sample)

Market Segmentation
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Market Segmentation
Marketing Segmentation is the way of dividing the market into different subsets of consumers portraying same characteristics so as to establish a niche for products. The markets are majorly segmented on various bases aligned to the features of the consumers. These bases include; demographic, behavioral, geographic, and psychographic and benefit basis of segmentations, all structured to take advantage and maximize on the different aspects of the consumer being CITATION Joh03 \l 1033 (O'Shaughnessy, 2013). These bases make-up market segmentation strategies through which businesses can establish a wider customer base in the market. Through market segmentation strategy the market is segmented by geographic location of the consumers as the consumer behaviors of people living in one place often differ from that of other customers residing in a different location. This is majorly caused by the differences in the needs of the consumers following the geographical differences that may have been caused by the language, climatic and cultural differences CITATION Joh03 \l 1033 (O'Shaughnessy, 2013).
The market may also be segmented on the basis of demographics, a segmentation strategy whereby the businesses use the demographic variables such as age, occupation, education, sex, trade type and income levels to establish a market niche for its products. By this, the business undertakes an extensive study to determine the demographic needs to provide products that provide maximum utility CITATION Wil09 \l 1033 (Luther, 2011). Businesses also segment the market into psychographic subsets, a strategy that is based the aspects such as consumers attitudes, lifestyle and personality in order to serve them well.
The psychological strategy is also supported by the behavioral segmentation strategy whereby the consumers are divided on the basis of their response and attitude towards the product. In this case, the business can serve its consumers say the loyal, occasional and the consumers who portray a positive attitude about the products well. With the benefit segmentation strategy, business segments its market into subsets representing consumers with different perceived significance and benefits consumers expect from the products. For example, other consumers expect dental cure as others just expect cleanliness from the use of to...