Bifalgorithm post · IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573 · 11.5. Market Segmentation*

What are the five basic forms of consumer market segmentation?

What are the five basic forms of consumer market segmentation? (IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573 · 11.5. Market Segmentation*) — "Demograph…

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  • Market segmentation differentiates markets by consumer characteristics, benefits, geography, lifestyle, or purchase volume.
  • Demographic segmentation uses age, education, gender, income, and household size to differentiate markets.
  • It is the most common approach because demographic information is easy to obtain.
  • The U.S. Census Bureau provides extensive demographic data, especially about metropolitan areas.
  • Census data can identify urban areas with high concentrations of high-income consumers, singles, or blue-collar workers.
  • Many products target specific age groups, such as products for people under 25 or for people 50 and older.
  • Income segmentation divides markets according to consumers’ income levels.
  • Income influences consumers’ wants and determines their buying power.
  • Housing, clothing, automobiles, alcoholic beverages, and frozen meals are segmented by income.
  • Geographic segmentation divides markets by region, city or county size, market density, or climate.
  • Companies use geographic segmentation to address regional preferences and buying habits, such as differences in pizza toppings or pickup-truck demand.
  • Psychographic segmentation groups consumers by shared personality traits, activities, interests, opinions, or lifestyles.
  • Benefit segmentation is based on what a product does rather than on consumer characteristics.
  • Toothpaste brands target benefits such as cavity and tartar prevention, children’s preferences, gum-disease prevention, whiter teeth, or sensitivity relief.
  • Volume segmentation divides consumers by the amount of product purchased: heavy, moderate, light, or nonusers.
  • Heavy users often account for a large portion of sales, so firms may target their marketing mix toward them.
  • Demographic information may not reveal enough about consumers to be the best segmentation approach.
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What are the five basic forms of consumer market segmentation?

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IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573

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"Demographic segmentation uses categories such as age, education, gender, income, and household size to differentiate among markets. This form of market segmentation is the most common because demographic information is easy to obtain. The U.S. Census Bureau provides a great deal of demographic data, especially about metropolitan areas. For example, marketing researchers can use census data to find areas within cities that contain high concentrations of high-income consumers, singles, blue-collar workers, and so forth. However, even though demographic information is easier to obtain than other types of information, it may not always be the best approach to segmentation because it is limited on what it can reveal about consumers. Many products are targeted to various age groups. Most music CDs, Pepsi, Coke, many movies, the Honda Fit, and thousands of other products are targeted toward teenagers and persons under 25 years old. In contrast, most cruises, medical products, fine jewelry, vacation homes, Teslas, and denture products are targeted toward people 50 years old and up. Income is another popular way to segment markets. Income level influences consumers’ wants and determines their buying power. Housing, clothing, automobiles, and alcoholic beverages are among the many markets segmented by income. Budget Gourmet frozen dinners are targeted to lower-income groups, whereas the Stouffer’s line and California Pizza Kitchen frozen pizzas are aimed at higher-income consumers. Geographic segmentation means segmenting markets by region of the country, city or county size, market density, or climate. Market density is the number of people or businesses within a certain area. Many companies segment their markets geographically to meet regional preferences and buying habits. Pizza Hut, for instance, gives easterners extra cheese, westerners more ingredients, and midwesterners both. Both Ford and Chevrolet sell more pickup trucks and truck parts in the middle of the country than on either coast. The well-defined “pickup truck belt” runs from the upper Midwest south through Texas and the Gulf states. Ford “owns” the northern half of this truck belt and Chevrolet the southern half. Psychographic segmentation is market segmentation by personality or lifestyle. People with common activities, interests, and opinions are grouped together and given a “lifestyle name.” Benefit segmentation is based on what a product will do rather than on consumer characteristics. For years Crest toothpaste was targeted toward consumers concerned with preventing cavities. Recently, Crest subdivided its market. It now offers regular Crest, Crest Tartar Control for people who want to prevent cavities and tartar buildup, Crest for kids with sparkles that taste like bubble gum, and another Crest that prevents gum disease. Another toothpaste, Topol, targets people who want whiter teeth—teeth without coffee, tea, or tobacco stains. Sensodyne toothpaste is aimed at people with highly sensitive teeth. Volume segmentation is based on the amount of the product purchased. Just about every product has heavy, moderate, and light users, as well as nonusers. Heavy users often account for a very large portion of a product’s sales. Thus, a firm might want to target its marketing mix to the heavy-user segment."

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