raphics of the buyers living there eg. age, income, sex, occupation, race, etc. 3.Psychographic segmentation Using psychographics to segment markets divides buyers into groups based on socioeconomic status, lifestyle or personality characteristics. Example, dividing the Australian market into leisure-seekers, work-oriented, and family-oriented segments. 4.Behaviour segmentation Behaviour segmentation is where buyers are divided into groups based on their product knowledge, usage, attitudes or responses. Within behaviour segmentation, of particular importance is a powerful form of segmentation, benefit segmentation, which groups buyers depending on the various benefits sought by buyers from the product class. For example, you could segment the cereal market based on the benefits sought by cereal buyers: brand (eg. Kellogg's), nutrition and health (eg. Sultana bran), diet (eg. Special K), taste (eg. Cocopops for kids), price (eg. Kellogg's cornflakes), etc. Notice how each segment has particular products or brand which caters for the needs of that particular segment? Bases for Segmenting Industrial MarketsMany of the variables used in segmenting consumer markets can be applied to the segmentation of industrial markets. Continue Requirements for Effective SegmentationUseful market segments must demonstrate the following characteristics: The size and purchasing power of the segments must be measurable. It must be possible to reach and serve the segment. The segments must be large or profitable enough. The segments must be suitable for the design of effective marketing mix programs. Target MarketingMarket segmentation conducted by the company would reveal the various segments the company's market consists of. The company now has to select which segment(s) it wishes to target. Evaluating Market SegmentsThe first step in evaluating market segments is where the company gathers data on sales, growth and expected profit for the variou...
