Sec-Socio-Economic Segmentation
A brief write-up on SEC – Socio-economic Segmentation by Kavitha Bangalore
From the glossaryofmarketing.com,
Socio-economic segmentation is defined as dividing the population into segments according to their incomes and social class.
Socio-economic segmentation is one of the basis of analysis of psychographic segmentation for consumer markets. The level of socio-economic development is traditionally considered an important determinant of buying patterns for both consumer and industrial goods.
In the case of industrial goods, the level of economic development tends to be associated with the degree of industrialization of the country, and hence with demand for certain types of complex industrial products, such as sophisticated electronic products or information services. Equally in the case of consumer goods, the level of socio-economic development may affect the size of the market for a particular product as well as the type and quality of products bought. Countries with low levels of economic development may not have mass markets for luxury items such as automobiles, air-conditioning, household gadgets, etc.
However, in some emerging countries, income distribution may be highly skewed with a very small proportion of the population with very high levels of income, thus providing a restricted market for expensive luxury items, such as jewelry and clothes. Countries at different levels of socio-economic development also tend to have different educational levels, standards of living and rates of economic growth which may significantly affect purchasing patterns. For example, countries with high percentage of literacy and education levels, such as Japan, may provide a better market for health items, vitamins, art goods, scientific instruments and other education dependent items than countries with comparable G.N.P. but lower levels of education.
G.N.P. per capita has been one of the most commonly used measures of economic development. However, levels of
From the glossaryofmarketing.com,
Socio-economic segmentation is defined as dividing the population into segments according to their incomes and social class.
Socio-economic segmentation is one of the basis of analysis of psychographic segmentation for consumer markets. The level of socio-economic development is traditionally considered an important determinant of buying patterns for both consumer and industrial goods.
In the case of industrial goods, the level of economic development tends to be associated with the degree of industrialization of the country, and hence with demand for certain types of complex industrial products, such as sophisticated electronic products or information services. Equally in the case of consumer goods, the level of socio-economic development may affect the size of the market for a particular product as well as the type and quality of products bought. Countries with low levels of economic development may not have mass markets for luxury items such as automobiles, air-conditioning, household gadgets, etc.
However, in some emerging countries, income distribution may be highly skewed with a very small proportion of the population with very high levels of income, thus providing a restricted market for expensive luxury items, such as jewelry and clothes. Countries at different levels of socio-economic development also tend to have different educational levels, standards of living and rates of economic growth which may significantly affect purchasing patterns. For example, countries with high percentage of literacy and education levels, such as Japan, may provide a better market for health items, vitamins, art goods, scientific instruments and other education dependent items than countries with comparable G.N.P. but lower levels of education.
G.N.P. per capita has been one of the most commonly used measures of economic development. However, levels of
References: http://marketing.wharton.upenn.edu/documents/research/7213_International_Market_Segmentation.pdf http://www.scribd.com/doc/18175179/Socio-Economic-Classes-of-India