Question

Hi, can I get definition and examples of:

a) market segmentation

b) sub-segmentation

Answer 1

a)

Market segmentation or customer segmentation is the process of dividing the target market which is different from one another. There are three types of market segmentation. They are:-

• Geographic segmentation by which market is divided by the climatic conditions, density, market size.
• Demographic segmentation is dividing the marked based on age, sex, ethnic background, income etc.
• Psychographics segmentation is dividing the market based on lifestyle, perception, desire etc.
• Behavioral segmentation is dividing the market based on the knowledge, attitude, uses of products, etc.

b)

Sub-segmentation refers to the segment that is a part of larger segment. The example of sub-segmentation age which is a part of demographic segmentation.