Product related segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. This type of segmentation is often used by businesses to identify target markets for their products and tailor their marketing efforts to appeal to these specific groups. There are a variety of different ways that companies can segment their markets, including demographic, geographic, behavioral, and psychographic segmentation.
Demographic segmentation involves dividing the market based on characteristics such as age, gender, income, education, and occupation. For example, a company selling luxury cars might target affluent, educated consumers in their 40s and 50s. On the other hand, a company selling budget-friendly clothing might target young, price-sensitive consumers.
Geographic segmentation involves dividing the market based on location, such as by country, region, or city. This type of segmentation is often used by businesses with a local focus, such as small retailers or restaurants. For example, a boutique clothing store might target customers in a specific neighborhood or city, while a restaurant might target customers in a specific region known for its culinary preferences.
Behavioral segmentation involves dividing the market based on consumers' behaviors and attitudes towards a product or service. This type of segmentation is often used to identify specific segments of consumers who are more likely to purchase a particular product. For example, a company selling sports equipment might target consumers who are avid runners or fitness enthusiasts, while a company selling organic food might target consumers who are concerned about their health and the environment.
Psychographic segmentation involves dividing the market based on consumers' lifestyles, values, and personality traits. This type of segmentation is often used to identify specific segments of consumers who are more likely to be interested in a particular product or service based on their personal interests and values. For example, a company selling outdoor gear might target consumers who are adventurous and environmentally conscious, while a company selling luxury travel experiences might target consumers who are sophisticated and have a high disposable income.
In conclusion, product related segmentation is a valuable tool for businesses looking to identify and target specific groups of consumers. By dividing the market into smaller segments based on characteristics such as demographics, geography, behavior, and psychographics, businesses can tailor their marketing efforts and create more effective and targeted campaigns.
