Segmentation plays an important role in the development of marketing strategy. Market segmentation divides the target market into subsets of consumers based on common preferences, need and wants. There are 4 ways to segment a market. Segmentation allows you to better develop your product because there will be a more precise match between the product and each segment needs and wants
Market Segmentation EXamples
Below are the four market segmentation examples that enable marketers to create customized marketing strategies
Demographic segmentation is a most widely used approach to segment a market. This strategy enables the company to divide a large market into subsets based on distinct characteristics, need and wants. Some common variables of demographic segments are
- Marital Status
For example, a company Victoria’s Secret deals in designing and marketing women lingerie and beauty products. They focused on women and “women” is the primary market segment in their marketing strategy.
Victoria’s Secret is also segmenting their target market with product differentiation as PINK for teenage girls.
Geographic segmentation strategy enables a company to serve their customers in a specific area. In this segment the customer base is broad, and they have preferences based on their location. Small businesses not required to spends budget national and international advertisements. Large companies have the option to spread a universal message and separate message to each market. Some examples of geographic segmentations are based on
- Population density
- Urban, Suburban, Rural
Victoria’s Secret is not only operating in America but expended it to geographies like UK and Europe. The currently have more than a dozen stores.
Victoria’s lingerie brand is operating in almost 75 countries with more or less 1000 stores globally. It also has 990 sales points in USA. This company also expanded its geographical segments to China. It is expanding lingerie market.
Psychographic segmentation allows marketers to segment market based on consumer personality traits, lifestyle and social class. Segmentation allows you to better develop your product because there will be a more precise match between the product and each segment needs and wants. People have different interest and attitudes and personality traits.
Some people may prefer bikes instead of cars. Some are very concern about the environment. Psychographic Segmentation took place when marketers segment a market based on these interests. Some of the variables of psychographic segmentation are
- Social class
- Life style
Victoria’s Secret is segmented its customer based on women personality and self-confidence. Todays’ Female Personality traits Victoria is targeting include looking sexy, fashionable, trying new looks and styles and open minded.
Behavioral segmentation allows marketers to segment market upon consumer knowledge of product and service. Behavioral variables give deep customer insight and it is the starting point to build profitable market segments. According to some marketers, behavioral segmentation is the closest thing to a magic bullet. Some of the behavioural segmentation examples are
- Benefits sought
- degree of loyalty
- buyer readiness
- User rate
See the example of Victoria’s secret, they have loyal customers because Victoria feels them alive and confident. Consumers purchase Victoria lingerie product line for prestige. Customers also prefer this brand during birthdays and holidays.
There are different market segmentation examples around us. Market segmentation is the first step in selecting target markets. It is the key element in the developing marketing strategy. Segmentation let marketers understand the overall market in a more meaningful way. By using this strategy, they can identify market gaps.
Market Segmentation Examples Coca-Cola
Coca Cola is an American Multinational Beverage manufacturer marketer and distributor. Coca cola has in placed multi-segment and targeting strategy. Here I will discuss demographic geographic psychographic and behavioral segmentation of Coca Cola.
Demographic Segmentation of Coca Cola
- Age. Coca Cola targets youngster from 15 to 25 years old.
- Gender. Both Men and Women on the target list of the company.
- Income. The income level segments include different packing, for example, returnable glass bottles, plastic bottles and Tins with different pricing strategies.
Geographic Segmentation of Coca Cola
- Asia Pacific
- North America
- Latin America
- Eurasia and Africa
- Fruktime Russia and Ukraine
- Minute Maid Pulpy Super Milky China
Psychographic Segmentation of Coca Cola
- Diet Coke for those who are health conscious people
- Coke also provide a variety of energy drinks who need energy specially in sport
- Real Gold targets busy people in offices
Behavioral Segmentation of Coca Cola
- Occasions like wedding, festivals, birthdays etc.
- Benefit sought. Drink to quench thirst and to refresh