Segmentation

Market segmentation divides a market into well-defined slices

The two broad groups of variables are used to segment consumer markets. Some researchers try to define segments by looking at descriptive characteristics: geographic, demographic, and psychographic.
Other researchers try to define segments by looking at behavioral considerations, such as consumer
responses to benefits, usage occasions, or brands.
The major segmentation variables for consumer markets are the following:
geographic region; city or metro size; density; climate; demographic age; family size; family life cycle; gender; income; occupation; education; religion; race; generation; nationality; social class; psychographic lifestyle; personality; behavioral occasions; benefits; user status; usage rate; loyalty status; readiness stage; attitude toward product .
Major segmentation variables for business markets are the following:
- demographic (industry; company size; location);
- operating variables (technology; user or nonuser status; customer capabilities);
- purchasing approaches (purchasing-function organization; power structure; nature of existing relationship; general purchasing policies; purchasing criteria);
- situational factors (urgency; specific application; size of order);
- personal characteristics (buyer-seller similarity; attitude toward risk; loyalty)

Sources:

⠀ Kotler, P., Keller, K. L.(2012). Marketing management(14th ed.). New Jersey: Prentice Hall (p. 236)

⠀ Kotler, P., Keller, K. L.(2012). Marketing management(14th ed.). New Jersey: Prentice Hall (p. 252)