Concept of market segmentation

The concept of a market segment is based on the fact that the market of commodities is not homogeneous but they are heterogeneous. The market represents a group of customers having common characteristics but two customers are never common in their nature, habits, hobbies income, and purchasing techniques.
Market Segmentation is a method of “dividing a market (Large) into smaller groupings of consumers or organizations in which each segment has a common characteristic such as needs or behavior.”

Type of segmentation

Geographic Segmentation
Demographic Segmentation
Psychological Segmentation
Behavioral Segmentation

Geographic segmentation

Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities
Region – South India, North, Western Region, East
City – metro cities, cities with a population of more than 1 million
World
Density, Climate, States, etc…
Ex. Tea is more popular in India, hence company lunch “ taaza, taj mahal and Lipton green tea “ in India.

Demographic segmentation

Divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
Demographic segmentation is the most popular segmentation method because consumer needs, wants, and usage often varies closely with demographic variables and are easier to measure than other types of variables.
Age - Product needs and interests often vary with consumers’ age
Gender - Gender is frequently a distinguishing variable Changes in the family and growth of the dual-income household have blurred some of the lines.
E.X.- The skin product named “Fair and lovely” for women and “fair and handsome” for men.

Psychological segmentation

The division of the market into different segments on the basis of psychology and personal traits, lifestyles, and values is called psychological segmentation.
Keeping psychological segments in mind, some products like pens, watches, cosmetics etc. are made or created for the common man and status seekers.
Here one of the best examples in this contest is Lever Ayush Therapy.

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Rapid urbanization, a booming economy, new job opportunities, and high disposable incomes in India have paved the way for an affluent lifestyle.
But they also put you at the risk of lifestyle diseases like high blood pressure, diabetes, obesity, heart diseases, etc.
Through Ayush, this new generation of Indians can rediscover everyday health and vitality through customized Ayurvedic solutions.
In India, honoring the religious sentiments, they focus on Vedas and Puranas. Due to this ayurvedic therapy is well known and more successful.

Behavioral Segmentation

Behavioral segmentation divides the market into groups based on their knowledge, attitudes, uses, and responses to the product. The following are commonly applied behavioral segments. Occasions: Groups individuals according to the occasions when they purchase, use, or think of buying a product.

ACCORDING TO USAGE

A person that wants to use luxury products he chooses "breeze soap.“ and he wants to use germ protect soap then he chooses “Lifebuoy '' or he wants to use soap that makes it fresh he chooses" Liril“.