Question: What is market
segmentation?
Answer: A procedure of a product divides the market into several groups of customers. Each group is known as segment or part of a market. The process dividing the market information is known as market segmentation.
Question: What are the
bases for segmenting a market?
Answer: The producer of a product may choose an appropriate base for segmenting the market. In general, there are four bases for segmenting a market, these are:
a.
Geographic: A geographical market/territory is divided into a
number of geographical units. Each unit is a geographic segment. For example a
company may divide the whole Bangladesh into 6 geographic units, such as Dhaka,
Chittagng, Rajshahi, Khulna, Barisal, Sylhet etc.
b.
Demographic: When a market is divided on the basis of following
factors then it’s called demographic segment. These are population, gender,
family, size, income of people, occupation, education and religion etc. A
company has decided to market a brand name “lipstick” on basis of income of
peoples. 1st segment for lower income (monthly up to 20 K), 2nd
segment for (monthly 20K-40K) and 3rd segment for (above 40K).
c. Psycho-graphic: When a market is divided on the basis of social
class then it’s called Psycho-graphic segmentation. A company may divide the whole
people into lower, middle and upper class or personality.
Example: A has company
has divided the population market on the basis of two personality factors. Such
as introvert and extrovert
d. Behavioral: Sometimes business organization uses a various behavioural factors. Such as occasion/event, user status, quality etc. Example: A company uses occasion as the basis of they select market segment
