What methods are used for market segmentation?

Market segmentation methods include demographic, geographic, psychographic, behavioural segmentation, and benefit segmentation.

Demographic segmentation is one of the most common methods and involves dividing the market based on variables such as age, gender, income, occupation, education, religion, race, and nationality. For example, a company selling luxury cars may target high-income individuals, while a toy company may target children of a certain age group.

Geographic segmentation involves dividing the market based on location. This could be as broad as country or as specific as neighbourhood. For example, a clothing company may sell different products in different countries based on the local climate and fashion trends.

Psychographic segmentation divides the market based on lifestyle, personality, values, opinions, and interests. For example, a travel company may target individuals who value adventure and new experiences, while a furniture company may target individuals who value home comfort and aesthetics.

Behavioural segmentation divides the market based on consumer behaviour, including their knowledge of, attitude towards, use of, or response to a product. For example, a software company may target individuals who frequently use technology, while a health food company may target individuals who are conscious about their diet and health.

Benefit segmentation involves dividing the market based on the benefits that consumers seek from the product. For example, a skincare company may have different products for those seeking anti-ageing benefits, hydration, or acne treatment.

Each of these methods can be used alone or in combination to create a detailed picture of the target market. The chosen method will depend on the nature of the product and the company's marketing strategy.