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…
Ideas in this flowchart
- 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.
