Developing Marketing Strategies
Source: Pearson Education
Market segmentation is the process of identifying smaller, or niche, markets within mass markets. The four factors are demographic, geographic, psychographic and behavioural. Demographic factors refer to the age, sex, education or income of the market segment. The geographic factors are about where the customers make purchase decisions, characterised by location and climate. Psychographic factors segment the market according to why a customer buys different products or services e.g. personality and social class. Behavioural factors describe the nature of the purchase, from consumer loyalty and usage rates.