Nescafe Swot Analysis - Basis for Market Segmentation

Basis for Market Segmentation

When it comes down to practical application of market segmentation analysis, there have to be some fixed parameters that marketers must adopt and enforce in order to achieve the best results and maximum profits. The following are the different factors that determine how the different market segments are arrived at.

Geographic Segmentation: This segmentation is done on the basis of the physical location and boundaries of the customers. The following considerations are necessary here. Read more on geographic segmentation.

* Which country the customer resides in.

* Are there any limitations on the usage and promotion of the product in the country.

* What is the size of the country and what is the density of the population there.

* What are the climate conditions in that country.

Demographic Segmentation: This process of analysis comes into play when the quality and other characteristics of the general population are taken into consideration.

* The age and the gender of the target audience needs to be considered.

* The common occupations and income levels of the population also play a part.

* The religion and language that the people follow also needs to be kept in mind.

* The family size and quality of education are also important here.

Psychographic Segmentation: In this category the attitudes and lifestyle of the consumers are considered. Also known as the IAO (Interests, Activities and Opinions) model, it plays a major part in devising successful marketing strategies. Read more onpsychographic segmentation.

* The general personality traits of the customers must be kept in mind.

* The values of the people and the attitudes that they have towards certain products are crucial pieces of information for a marketer.

* The hobbies and the perception of the selling company are also necessary to be obtained.

Behavioral Segmentation: Here the marketer takes into account the general behavioral patterns of the customers and tries to forecast what reactions they would possibly have to the adopted marketing strategies.

* The benefits that the customers are looking for, and the value they seek and derive.

* The degree of brand loyalty and brand satisfaction.

* The willingness to buy a product, and also the rate of its usage.

* The profitability of marketing there and also the income level of the targeted