What are some examples of segmentation in business?

What are some examples of segmentation in business?

Segmentation in business involves dividing a market into distinct groups. Examples include demographic, geographic, psychographic, and behavioral segmentation.

Can you explain demographic segmentation?

Demographic segmentation divides the market based on variables like age, gender, income, and education. For instance, a luxury brand may target high-income individuals.

What about psychographic segmentation?

Psychographic segmentation focuses on lifestyle, values, and personality traits. For example, a brand targeting eco-conscious consumers would tailor its marketing to align with their values.

How does geographic segmentation work?

Geographic segmentation divides the market based on location. A company might market winter clothing in colder regions and summer apparel in warmer areas.

Can you give an example of behavioral segmentation?

Behavioral segmentation categorizes consumers based on their behavior, such as purchasing habits. For instance, a brand might target frequent buyers with loyalty rewards.