Contemporary Business Studies - Academy of Knowledge Process ...

International Journal of Contemporary Business StudiesVol: 4, No: 2. February, 2013 ISSN 2156-7506Available online at http://www.akpinsight.webs.comdemographic, psychological, geographic, and focused on these groups or segments. so this action makemarketer more focused on their target audience and make plans and products for this specific group ofcustomer. When we discussed market segmentation we need to consider three important areas ofmarketing also when and how we introduce and market our product (Tu, 2008). This first and mostimportant area of marketing is mass marketing. This mass marketing area consists of mass production,mass distribution and mass promotion of product for their customer. The second prime area isdifferentiated marketing of that product. The organization introduces different products for differentgroup of customers on the basis of their features, styles, quality and size. The last area is marketing oftargeted group of customers. The marketer choice large number of customers then pick up a group thathave common character on the basis of their age, size gender and choice then targeted specific group ofcustomers there are many common characters of consumers but normally we consider psychographics,geographic, demographics and behavioral segments(Zhang, Jiao, & Ma, 2007).8.1 Demographic segmentationThe marketer choice large number of customers then pick up a group that have common character on thebasis of their age, size gender and choice then targeted specific group of customers there are manycommon characters of consumers but normally we consider psychographics, geographic, demographicsand behavioral segments. In a demographics segment we also consider family size, family style, age,gender, family life cycle, income education, religion, generation, social class, occupation and nationality.Demographic segmentation is often used because the areas or variables of demographics are easilyidentify and measurable. Moreover demographic segmentation variables are common used for manyproducts and they provide common group of customers which facilitate marketers so they can approachthem easily. Demographic variable is useful for market segmentation and easy to use (Reichardt &Bornholdt, 2008)8.1.1 Age and life-cycle segmentationWe have another economic theory that each customer has different choice because of their age and whentheir age change their need, choices and preferences also change. Due to that reason many companies uselife cycle segmentation and age factor for common character. Age and life cycle play important role formarketers to choose targeted area(Barat, 2010). For example peoples of age 60 above used normallylandline telephone because mobile phones used modern technology so these peoples hesitate to usemobiles. On the other hand, teenager likes mobile phone due to their age and life cycle. So age and lifecycle play important role when we like to segment the market on the basis of landline and mobile phone.Although age and life- cycle segmentation is easy but marketers always careful y used these because ofstereotypes(Bauer & Auer-Srnka, 2012).8.1.2 Gender segmentationMale and female have different nature, attitude and their behavior is also different so gender segmentationis also used for market segmentation. We consider men and women on the basis of their different attitudeabout different products. When we consider gender segmentation then we also consider hairstyling,cosmetics, clothing, and their magazines. Marketers carefully introduce product on the basis of theirgender and metro sexuality (Wyly & Ponder, 2011).8.1.3 Income segmentationAnother very important factor of market segmentation is income segmentation we divided peoples on thebasis of their income, because income lead to expense and choice. Income segmentation is normally usedin automobiles, cosmetics, clothing, fashion, travel, and financial service industry. Because manycompanies of these above mention industries try focusing on high income customer because theseindustries products are expensive. Some other industries focused on low income customers because ofloyalty and prevent them from competitive pressure. Although income segmentation is important formarket segmentation but some time income segmentation not always predict more appropriate and2013©Academy of Knowledge Process49