Steps in Service market segmentation [Important points]

There are several ways or methods to segment a market. Such ways or methods depends upon consumer characteristics and their responses to the products or services.

A paradigm shift has taken place in the way the Indian corporate (is) viewing customers. There has been a shift from organizing by-products to organizing by-market segments. For example, Maruti is segmenting is customers on the basis of economic and premium class, which was not done previously.

I.        GEOGRAPHIC SEGMENTATION :

In geographic segmentation, the market is sub divided on the basis of area.

• —       Region
• Urban / Rural 
•  Locality 

II.       DEMOGRAPHIC SEGMENTATION :

Demography refers to study about the different aspects of population. Markets can be divided on demographic factors like age, gender, education etc. The various demographic factors are :

• —       Age
• —       Gender
•        Income 
• —       Education 
• —       Family Size
• —       Family Life Cycle
• —       Race and Religion

III.      SOCIOGRAPHIC SEGMENTATION :

The market can be segmented on the basis of sociological factors such as :

• —       Cultural Influences
• —       Influence of Social Class
• —       Influence of Reference Groups 

IV.     PSYCHOGRAPHIC SEGMENTATION :

It refers to individual aspects like life style and personality.

• —       Life-Style 
• —       Personality

V.      BEHAVIOURAL SEGMENTATION :

In this case, buyers are divided into groups on the basis of their response to the product – usage rate, user status, loyalty status, buying motives, and so On.

• —       Usage Rate 
•        User Status 
• —       Readiness Stage
• —       Buying Motives

Read the full answer at: http://www.bms.co.in/explain-bases-of-market-segmentation/