Market Segmentation

Market Segmentation Concept

Market segmentation consists on an analyses and identification process of groups of clients with homogeneous needs and preferences or with some homogeneity level. Through the segmentation process, the market is divided in groups of clients with similar needs and preferences (the called market segments), allowing that the company better adapts its marketing politics to its target-market.

To perform the market segmentation can be used different segmentation variable, namely:

  • Demographic variables: include age, sex, race, marital status, family size, training, employment, income …
  • Geographic variables: include country, region, urban or rural, climate …
  • Psychographic variables: represents values beliefs and attitudes (where are included the political and religious preferences, social-economical status, culture, hobbies …)
  • Behavioral variables: includes the loyalty to the brand, use tax, given application to the good, understood benefits…
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