market segmentation

1. Market segmentation is the process of dividing a broad consumer or business market into smaller, more manageable groups of consumers or segments based on shared characteristics such as demographics, behavior, needs, or geographic location.  1. Demographic Segmentation Divides the market based on characteristics like age, gender, income, education, family size, etc. - Bajaj Allianz Life Insurance offers different insurance plans based on life stages (child plan, retirement plan), targeting customers with varying income levels and life stages. 2. Firmographic Segmentation Focuses on business-related characteristics, often used in B2B marketing, such as industry, company size, revenue, or location. Example: Tata Consultancy Services (TCS) targets different firmographic segments such as large enterprises, SMEs, and startups, offering customized IT solutions based on company size and industry needs. 3. Geographic Segmentation Based on geographic areas like regions, cities, climate zones, or rural vs. urban markets. Example: Parle-G markets differently in rural and urban areas. In rural India, they focus on the biscuit's affordability and availability, while in urban areas, they emphasize nostalgia and brand trust. 4. Psychographic Segmentation

2. Based on lifestyle, values, interests, and personality traits. Example: Fastrack targets a youthful, fashion-conscious segment with its trendy watches and accessories. The brand connects with consumers who see themselves as young, bold, and experimental. 5. Behavioral Segmentation Divides the market based on consumer behavior, such as purchasing habits, brand loyalty, usage rate, or benefits sought. Example: Flipkart uses behavioral segmentation by offering personalized recommendations based on customers’ previous browsing and buying behavior. For example, frequent buyers of electronics might see more tech offers.