Answer to Question #125052 in Marketing for Ally Ahmed

Question

Explain the bases of market segmentation and the criteria for effective segmentations

Answer 1

Market segmentation divides the target market into four bases that share similar characteristics. Demographic segmentation uses statistical data about a group of people such as Age, Gender and location. Psychographic segmentation categorizes groups based on their personalities and characteristics such as values, attitudes and interests. Behavioral segmentation focuses on how the customer acts such as purchasing and spending habits. Geographic segmentation groups customers based on their geographic location. The criteria for effective segmentation includes developing measurable and attainable, relevant, accessible, substancial and valid segments.