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MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation

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Consumer Psychology (PSY - 514)
VU
Lesson 12:
MARKET SEGMENTATION AND ITS BASES
OBJECTIVES:
UNDERSTANDING:
Be able to define market segmentation
Learning who uses market segmentation and how
market segmentation operates
Understanding :
o  Geographic Segmentation
What is Market?
Market consists of:
P E O P
L E
BUT - not just ANY people, they have to have:
Willingness to buy
Purchasing power (money)
Authority to buy
1. Market Segmentation
The process of dividing market into distinct subsets of consumers with common needs or characteristics is called
Market Segmentation. The concept of segmentation goes hands in hands with the concept of diversity. Diversity
compliments Segmentation
But why do we need to segment people in groups?
If all consumers were alike with same needs, wants and desires and the same background education and experience
the mass marketing be a logical strategy.
Undifferentiated Marketing,
Offering the same product and marketing mix to all consumers. When trying to sell the same product to every
prospect with a single advertising campaign, the marketer must portray its product as a means of satisfying a
common or generic need and therefore, ends up in appealing to no one
How Market Looks Before Segmentation
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Consumer Psychology (PSY - 514)
VU
How Market Looks After Segmentation
Quantitative Research Designs & Data Collection Instruments
Segmentation benefits both marketers and the consumers. Marketers in all organizations/institutions and
industries practice segmentation strategies. This may include consumer goods industries, hotels, development
sector, etc.
How Market Segments Operates
1. Fill the gaps in the marketplace
Many new products have been registered to fill the gaps in the marketplace revealed by the segmentation studies
2. To identify the most Appropriate Media
Segmentation studies are used to identify the most appropriate media in which to place the advertisements. All
media vehicles from TV and Radio Stations to Newspapers and magazines use segmentation research to determine
the characteristics of their audience and to publicize their findings in order to attract advertisers. In cases if the
segments of customers are large enough and can attract enough advertising the media spins off separate programs
or publications targeted to the specific segments
Bases for Segmentation
The first step in developing the segmentation strategy is select most appropriate base(s) on which to segment the
market
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Consumer Psychology (PSY - 514)
VU
Nine Bases for Segmentation
Segmentation Bases
Geographic Segmentation
Demographic Segmentation
Psychological Segmentation
Psychographic Segmentation
Sociocultural Segmentation
Use-Related Segmentation
Use-Situation Segmentation
Benefit Segmentation
Hybrid Segmentation
1. Geographical Segmentation
In Geographical Segmentation, the market is divided by location. The theory behind the strategy is that people
who live in the same area share similar needs and wants which differ from needs and wants of people living in
other areas. Variables included in the geographical segmentation are:
Region
City Size
Density of Area
Climate
Global Marketing Strategy
Some marketers believe that the internet has erased all regional boundaries and clearly, any company that decides
to put its catalog on the internet makes it easy for the individuals all over the world to browse and become
customers.
Divergent Consumer Patterns
Marketers have observed divergent consumer patterns among urban, suburban and rural areas
Urban Areas
o  Population in Pakistan is focused in the urban areas
o  Every year there is a greater influx of population that permanently migrates to bigger cities or the
nearby urban areas
Small Towns and Villages
o  People in small towns when they have to purchase their electronic items, electrical appliances,
furniture and other technical equipment they do it from the urban areas
o  The markets in the rural areas merely include raw food items and local cultural products, local
fruits and crops, etc.
Benefits of Geographical Segmentation
It is relatively easy to find geographically based differences for many products. Geographic Segments can be easily
reached through local media
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Table of Contents:
  1. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer Behavior
  2. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
  3. INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price
  4. INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value
  5. VALUE AND RETENTION FOCUSED MARKETING AND CONSUMER DECISION MAKING PROCESS
  6. CONSUMER RESEARCH:Quantitative Research, Qualitative Research
  7. MAJOR STEPS IN CONSUMER RESEARCH PROCESS:Design of Primary research
  8. QUANTITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  9. QUANTITATIVE RESEARCH DATA COLLECTION TECHNIQUES:ATTITUDE SCALES
  10. QUALITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  11. CUSTOMER SATISFACTION MEASUREMENT, SAMPLING, AND DATA ANALYSIS AND REPORTING
  12. MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation
  13. BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION
  14. BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION
  15. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues
  16. BASES FOR SEGMENTATION: HYBRID SEGMENTATION STRATEGIES
  17. MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE
  18. HOW CULTURE IS LEARNT ENVIRONMENTAL INFLUENCES:Formal Learning
  19. CULTURE AND ITS MEASUREMENT ENVIRONMENTAL INFLUENCES
  20. MEASUREMENT OF CULTURE ENVIRONMENTAL INFLUENCES:Consumer Fieldwork
  21. SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  22. AGE AND GENDER SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  23. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Market Segmentation
  24. SOCIAL CLASS CHAPTER 4: ENVIRONMENTAL INFLUENCES:Occupation
  25. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Affluent Consumer
  26. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Membership Group
  27. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups
  28. UNDERSTANDING PERSONALITY CHAPTER 5: INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOR
  29. CONSUMER PERSONALITY, TRAIT THEORY AND SELF IMAGES
  30. CONSUMER MOTIVATION:Needs, Goals, Generic Goals
  31. UNDERSTANDING LEARNING:Intentional and Incidental Learning, Implications for Marketers
  32. INSTRUMENTAL CONDITIONING, INFORMATION PROCESSING AND MEMORY
  33. ATTITUDES:Characteristics of Attitudes, Attitudes have consistency
  34. ATTITUDE FORMATION AND CHANGE:How attitudes are learned?
  35. ATTITUDE CHANGE STRATEGIES:Resolving two conflicting attitudes
  36. INTRODUCTION TO CONSUMER DECISION MAKING:Decision Complexity
  37. Problem Recognition, Search and Evaluation and Decision and Purchase
  38. Decision and Purchase:Consumer Decision Rules, Output, Relationship Marketing
  39. Decisions Related to Post Purchase:Product Set up and Use
  40. Marketing Implications of Decisions Related to Post Purchase:Understanding
  41. Post Purchase Evaluation:Determinants of Satisfaction, Consumer Complaint Behavior
  42. Post Purchase Dissonance:Dissonance Reduction, Marketing Implications
  43. Consumerism:Roots of Consumerism, The Nature of Consumerism
  44. Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy
  45. Review Consumer Psychology Course:Consumer Research, Consumerism