Demographic segmentation is the most commonly used criteria, since it requires information that can be collected easily and that enable you to quickly target a potential market. These criteria include gender, age, nationality, education, profession, income or family situation.

What are the major variables used in market segmentation?

The factors which are be used to segment a market are the segmentation variables. Common variables include demographic, geographic, psychographics and behavioural considerations. Quantifiable population characteristics, such as age, gender, income, education, family situation. The physical location or region.

Which is the best criteria for segmenting a market?

In order to segment markets appropriately, you must combine the most relevant segmentation criteria for your company and product. The combination of market segmentation criteria should lead to market segments that are measurable, accessible, substantial and actionable. The result should be precise, better-defined target groups.

How is Segmentation, Targeting, and positioning achieved?

It is achieved through the segmentation, targeting, and positioning (STP) process. Market segmentation and targeting help firms determine and acquire key customers. Consumers can be put into segments based on location, lifestyle, and demographics. Another way to segment consumers is by asking the who, what, and why question.

Which is an example of demographic market segmentation?

Demographic Market Segmentation. Demographic market segmentation is all about people. It divides the market into segments based market segmentation criteria that tell us something about the population: age, gender, family size etc.

How to determine the size of your target market?

Once your target market is defined through your knowledge of product appeals and market analysis, and can be measured, you should determine whether that target market is large enough to sustain your business on an ongoing basis. In addition, your target market needs to be reachable. There must be ways of talking to your target audience.