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Explain the factors that should be considered during market segmentation?

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Market segmentation is the concept of dividing a complete market into smaller consumer groups with similar taste in certain products, preferences, demands and loyalty.
The following factors are to be considered during the process of market segmentation;

(a) Age and age group
Understanding the range and dominance of age group will enable the investors to determine the most convenient products and services to avail in a respective market. This helps to avoid provision of irrelevant services and products.

(b) Gender
Both males an females have their own preferences and hence a man will not show interest in products which are meant for ladies such as cosmetics and attire. The reverse is also true for women.
The need to consider the gender by marketers help to meet the demands of each gender independently.

(c) Earning
The amount of income a group of people get determines the purchasing power of the same people. This gives rise to people with high, mid and low purchasing power in a market.
During market segmentation, this ability to consume goods directs marketers on the appropriate strategies to use so as to target each consumer group.

(d) Profession
The kind of profession or rather the type of job in which a population in a market undertakes will influence the dominance kind of product and goods consumed. For example, a market frequented by mechanical engineers will have a particular set of goods different from the one frequented by doctors or scholars.

(e) Marital status
This refers to the state of individuals being single or in marriage. A market with bachelors with specific preferences in terms of the types of goods and services used as opposed to a market with couples. This idea shapes the way the segmentation of a market will be done.

Andreaz answered the question on December 15, 2017 at 13:25

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Explain the factors that should be considered during market segmentation?

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