The Segmented Market
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Bases of Segmentation
There are many different ways by which a company can segment its market, and the chosen process varies from one product to another (see). Also, since markets are very dynamic, and products change over time, the bases for segmentation must likewise change. (See Figure 2.2).
| Bases for Segmentation | ||
|---|---|---|
| Primary dimension | Consumer market | Industrial market |
| Characteristics of person or organization | Geography, age, sex, race, income, life cycle, personality, lifestyle | Industry (SIC), location, size, technology, profitability, legal, buying situation |
| Purchase situation | Purpose, benefits, purchase approach, choice criteria, brand loyalty, importance | Volume, frequency, application, choice criteria, purchasing procedure, importance |
FIGURE 2.2 Bases for Segmenting Markets: Consumer and Industrial Markets
In line with these basic differences we will first discuss the bases for segmenting ultimate consumers followed by a discussion of the factors used to segment industrial users.