Customer Market Segmentation

There are numerous people in the market, interested in buying and selling of different products and services. Not every people buys the product or services offered by a particular company. So, there is a need to understand the nature of people who are likely to buy such product or service. This might require a market segmentation. Market segmentation is division of market into a group of customers who have similar need and wants. This can also be called as an adaptive strategy, where the decision makers picks one or more of the market segments and target with products which meets their needs. On the other hand, segmentation can lead to a better financial performance of the company. There can be different bases for segmentation of products: mainly Demographic, Geographic, Psychographic and Behavioral.

Geographic segmentation is division of market into different geographical parts, like cities, countries etc. A company can offer product by looking a relevant product which can suit the need of the company.

Demographic segmentation is segmentation on the basis of demographic variables like age, family, gender, income etc.

Psychographic segmentation on the other hand, uses the psychology and demographics to understand the customers. Here the buyers are divided based on personality trait, lifestyle or values they have.

Behavioral segmentation marketers divide buyers into group based on their knowledge, attitude towards, use of, response to a product.

So, my analysis on the segmentation of the 4 products are like this.

Lawn Mowers: In my opinion, not much of the low income or high income people have well-groomed lawns. Only high income and elite social group is able to maintain the lawns. On the other hand, in Kathmandu, finding a garden is a difficult job while that might be common in places outside Kathmandu. So, I would go for a geographic segmentation, where we target on cities where gardens are common and also, Psychographic segmentation by focusing on a good lifestyle of elite life might be a good segmentation.

Frozen dinners: Frozen dinners are common among busy working professionals and economically active work group. So I would go for Geographic segmentation at first to focus on city areas. Secondly, I would also segment it on basis of demography or age group, where the economically active age group are more likely to buy such frozen foods.

Dry breakfast cereals: Demographic segment on basis of age can be a good criteria for this product. There are different types of cereals shown on market, offered to different aged people. Hence, by this we can better segment the market segment of cereals.

Soft-drinks: The soft drinks can be of different types, say diet coke, having juice etc. Hence, people can choose based upon their preference. So, in my opinion, psychographic segmentation is better for this product.