Describe at least three methods for segmenting for the tranportation market(all

Question

Describe at least three methods for segmenting for the tranportation market(all methods), cite examples: Demographic segment - It means the selection of market area using the difference between people using their age, income, gender, family members etc. II> Geographic segment - It means the selection of market area using the difference between the location. III> Psychographics segment - It means the selection of market area using the difference between the characteristics/lifestyle of people. IV> Behavioural segment - It means the selection of market area using the difference between product/service purchase frequency, benefits, buyer's interests, needs/demands of product/service

Explanation / Answer

MARKET SEGMENTATION :-

Market segmentation is the action of dividing a market or its consumers into groups according to their different characteristics such as income, interest, lifestyles etc. This segmentation of market help the potential customers to serve more.

METHODS OF MARKET SEGMENTATION :-

As you have already mentioned above about the segmenting methods of market, so let me describe it more clearly.

There are mainly 4 types of methods for segmenting a market :-

1. DEMOGRAPHIC SEGMENTATION :-

This segmentation method of market is the most commonly used process. Segmentation is done on the basis of demographic variables such as age, gender, lifestyle, family income, family size, marital status, religion, occupation, race, nationality etc. This helps companies to distribute properly.

Examples :-

In cosmetic company, they mostly target female customers for their product sales.

Automobile companies mostly segment according to the income of a family. For example - Maruti, TATA, Ford etc have some model cars for the middle income group people. Whereas, Audi, BMW etc brands target high income families.

Johnson & Johnson company mostly target infants as they produce baby soap, baby cream, baby powder, diapers etc.

2. GEOGRAPHIC SEGMENTATION :-

It is the most common form of segmenting a market. From the name itself we can know that this segmentation is done according to the geographic location such as country, city, region, climate etc. It is totally depend upon the companies whether they want to target a particular country or a region. It is to be noted that customers with diferent geographic location have their own requirements.

Examples :-

Drought prone areas may need bottled drinking water whereas a normal area need not necessarily want bottled water.

Cold countries customers need sweaters, jackets, boots, shawls, hats etc to keep them warm all the time whereas in warm countries people doesnot need warm clothes.

According to the customer's cultural preferences, restaurants serve them different types of meals. McDonald's serves beer in German meals whereas beer is not a part of the menu in U.S. meals.

3. PSYCHOGRAPHIC SEGMENTATION :-

This type of segmentation is mainly done on the basis of the customer's psychology i.e. personality, attitude, lifestyles etc.

Example :-

In U.S. there is a trend to go for camping trip, whereas in India it is not like that. So, companies which produce camping trip packs can target U.S. customers.

The lifestyles of U.S. is much different than that of India. Restaurants serve fast food pack meals to the working persons.

The dressing code of U.S. is different such as they prefer to wear jeans, shirt, tops, skirts etc whereas in India they prefer saree, salwars etc to wear.

Lifstyles of rural and urban areas are different.

4. BEHAVIORAL SEGMENTATION :-

This types of segmentation is based upon the behaviors of customers such as their brand loyalty, price, usages, choice and preferences etc. If the customers truely knows the usage of the products then the donot have any problem with that.

Examples :-

Customers buys products according to their occations such as in U.S. customers buys gift cards, toys, cakes, winter apparals, christmas trees and other stuffs during christmas. whereas in India customers buy diwali candles, sweets, rangolies etc for diwali.

Sports or athelic person may prefer energy drink or protein shake where as a normal person may drink a regular beverage or coke.

Some people may prefer to use iphone and some may prefer android phones.

Please comment, if any doubt :)

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