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Market
segmentation
must
be
performed periodically since the market
segmentation may change instantly. This change is caused that customers itself
consist
of
various
group
classification,
like for example, divided by age profile,
income profile, etc.
Two common variables which is used to divide the consumer markets i.e.
consumer
characteristics: geographic, demographic and psychographics. The other
variable
is consumer response to the benefits obtained, situation and condition or
branding.
Kotler (2000, p.263) explaining
major segmentation variables-geographic,
demographic, psychographic, and behavioral segmentation are as follows:
Geographic
Segmentation
calls
for
dividing
the
market
into
different
geographical units such as nations, states, regions, counties, cities, or
neighborhoods.
The company can operate in one or a few geographic area
or operate in all but pay attention to local variations.
Demographic
Segmentation,
in
demographic
segmentation
the
market
is
divided into groups on the basis of variables such as age, family size,
family
life
cycle,
gender,
income, occupation,
education,
religion,
race,
generation, nationality, social class. Demographic variables are the most
popular bases for distinguishing customer groups.
Psychographic Segmentation,
in psychographic segmentation, buyers are
divided into different groups on the basis of lifestyle or personality and
values. People within the same
demographic group exhibit very different
psychographic profiles.
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