Marketing segmentation or geodemographic marketing segmentation is a development of this desire, on the part of the manufacturer to meet the most customers, who will be interested in and purchase the products they develop. According to the Dictionary of Business geodemographic segmentation is defined as:
Market segmentation in which consumers are grouped according to demographic variables, such as income and age, and identified by a geographic variable, such as post code or zip code. The base data is obtained from the census data. Two principles are involved: (1) people who live in the same neighbourhood, defined by a census enumeration district, are likely to share similar buying habits; (2) neighbourhoods can be categorized in terms of their populations: two or more neighbourhoods with similar populations can be placed in the same category.
1996, p. 229)
There is a clear sense that though the geodemographic information of consumers is not always the most demonstrative of their actual buying habits, yet it is certainly a beginning. More specific marketing segmentation, has been attempted, beyond geographic location, and can be grouped into comparative models that also constitute specialized markets, which individual marketers can seek to understand to better sell their products to them. Marketers frequently model brand and product information to specific market segments, and often by selling them what they want, rather than what they necessarily need.
The development of the marketing concept changed the nature of marketing activities by focusing upon a customer orientation. New product development was encouraged since a greater diversity of products was required to meet customer needs.... This is called market segmentation -- a process of dividing a diverse market into groups of consumers with relatively similar characteristics, wants, needs, buying habits, or reactions to marketing efforts. Consumers are grouped according to some variable or variables such as demographic, geographic, or psychological factors. (Michman, 1991, p. 4)
Marketing from a consumer base is the standard trend in business, at this time. The consumer then determines the need and/or availability of a product based on market research, as it is a given that developing and manufacturing products that consumers will not buy or use is fruitless, regardless of the fact that the product may be a technological breakthrough. There are also varied types of segmentation that drive marketing issues. Geodemographic segmentation is a collective of marketing strategies that arise from demographic segmentation, which does not always assume that people who live in the same neighborhood will purchase the same products, but that many other factors are at play in individual decisions and individual perception of products and/or services being marketed. Demographic segmentation is defined as:
Dividing a market into groups based on such demographic variables as age, sex, family size, family life cycle, income, occupation, education, religion, race, or nationality (see also market segmentation). While demographic segmentation has been popular in marketing, it is now used together with benefit, life-stage, and life-cycle segmentation to try to produce more predictable market information.
1996, p. 155)
The market can also consider behavioral segmentation as an option for marketing strategy. "Behavioural segmentation the process of dividing a market into groups based upon the consumer's knowledge of a product, attitude to it, use for it, or response to it. "
1996, p. 55) Behavioral segmentation can also be based upon past product purchases and behaviors, based either on historical data of the individual or of the individuals particular market group, as it has been defined.
Benefit segmentation also markets to consumers through ideas about what benefits they seek from particular products and is defined as:
The process of dividing a market based on the specific benefits consumers seek from a product. For example, some car buyers want comfort and reliability from their car, while others look for style and speed. A car manufacturer, therefore, has to decide which benefits to offer.
(1996, p. 56)
There is also concentrated segmentation or niche marketing, 1996, p. 114) gender segmentation, 1996, p. 228) differentiated marketing (where multiple marketing strategies are utilized for the same products, depending on the consumer desire)
1996, p. 159) and lifestyle segmentation
1996, p. 292). Addtioanlly, there are many combined segmentation styles, such as sagacity segmentation defined as:
form of *market segmentation developed to improve the discriminating power of income and demographic classifications. This form of segmentation combines *life cycle, income, and socio-economic information with *JICNAR data. The underlying theme is that as people pass through the various stages of their lives they have different aspirations and patterns of behaviour,...
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