1.4 Explain Different Ways Of Segmenting Customer Groups
1.4 explain different ways of segmenting customer groups
There are many different ways for a company to segment customer groups in order to find the most ideal customers for certain products or services that they are offering. Some of these include geographic segmentation, demographic segmentation, psychographic segmentation, and behavioural segmentation.
1. Demographics (age, race, religion, gender, family size, ethnicity, income, education level).
This is basically the study of population. Demographic sets are the most common form of segmentation based on customer traits. The most common demographic sets are: occupation, religion, age, gender, marital status, education & Income. Having segmented groups using their demographics also helps to analyse lots of data quickly and in a short amount of time. One of many advantages of demographic segmentation is that the information you require is readily available for you. You are able to obtain census data to determine how, where, and who you want to market your product. A disadvantage of demographic segmentation is the possibility to make an organisation vulnerable to competitors. Competitors may try to use the same marketing techniques to their advantage and possibly take away customers.
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Geography (where they live and work)
There are several ways a company can use geographical segmentation, for example they could use; city, county or state. Segments can vary as a country or a region, or even as specific as one street of houses in a town. This is often used in marketing as companies want to know where their products or services are doing best and where they need to be advertise more. It works well in different areas of population density. Consumers in an urban environment often have different needs and wants than people in suburban and rural environments. There are even cultural differences between these three
There are many different ways for a company to segment customer groups in order to find the most ideal customers for certain products or services that they are offering. Some of these include geographic segmentation, demographic segmentation, psychographic segmentation, and behavioural segmentation.
1. Demographics (age, race, religion, gender, family size, ethnicity, income, education level).
This is basically the study of population. Demographic sets are the most common form of segmentation based on customer traits. The most common demographic sets are: occupation, religion, age, gender, marital status, education & Income. Having segmented groups using their demographics also helps to analyse lots of data quickly and in a short amount of time. One of many advantages of demographic segmentation is that the information you require is readily available for you. You are able to obtain census data to determine how, where, and who you want to market your product. A disadvantage of demographic segmentation is the possibility to make an organisation vulnerable to competitors. Competitors may try to use the same marketing techniques to their advantage and possibly take away customers.
2. …show more content…
Geography (where they live and work)
There are several ways a company can use geographical segmentation, for example they could use; city, county or state. Segments can vary as a country or a region, or even as specific as one street of houses in a town. This is often used in marketing as companies want to know where their products or services are doing best and where they need to be advertise more. It works well in different areas of population density. Consumers in an urban environment often have different needs and wants than people in suburban and rural environments. There are even cultural differences between these three