Market Segmentation is the process and method of selecting or identifying one or more different groups of a broad market to which a business or product manufacturer can target. It is widely considered to be adaptive strategy because it is a common practice among the contemporary manufacturers to get use to the market needs based on the outcome of their market segmentation. Product manufacturers develop new products, modify their advertising campaign or even change their identities as a result of their segmenting market.
In actual fact, segmentation is not purely adaptive as marketer can choose a targeted market segment and focus on their needs with the objectives of having competitive advantage over other marketers who are aiming that same segment but with liberal attitude.However, the bottom line is for the marketers to be able to provide higher values to potential customers through the implementation of segmentation into their marketing activities.
There are several different kinds of variables that can be used for segmentation. Notable of them are demographic, lifestyles, behaviour and benefits.
Demographics variable refers to personal characteristics of the targeted market. This might be age, gender, location, income education, nationality, etc. For example, we can say that a particular age group, say between age of 35 and 45 are more prone to having rheumatism and so a marketers can focus on such groups and proffer drugs for rheumatism only to them.
In case of lifestyle, some consumers would prefer to stand apart from the crowd while others will want to be seen as similar to others. Some consumers only attend an occasion in a particular attires.
Some consumers show behavioral trait as they prefer to stay with their favorite brands even if competing brands add more values to their own. Some consumers use heavily while some others use lightly.
Some consumer will prefer product based on its benefits.While some consumer will prefer de-caffeinated coffee despite its high cost, others will stick to natural coffee because of its benefits.