Market segmentation happens when a company divides its potential customers into groups or segments based on different characteristics like age, interests, demand, or location. It helps companies easily reach customers who share similar traits, making it easy to achieve business goals. For example, if you sell winter clothing all year round in a country like Bangladesh, where winters are short, you might face low demand during summer. But in countries like Switzerland, Sweden, or Finland, where winters are long, the demand for winter clothing remains steady. So, segmenting markets based on customer preferences and characteristics is important.
Segmentation can be based on geographic, demographic, psychographic, or behavioural factors. Geographic segmentation divides markets based on geographical locations. For instance, companies selling ice cream or cold drinks target countries with warmer climates. In Chattogram, there's a tradition of hosting regional festivals, so restaurants there offer traditional dishes. Demographic segmentation considers factors like age, gender and income. Companies might produce different shoe designs for different age groups. Psychographic segmentation considers consumers' lifestyle, social status, and personality. For example, wealthy Arabs have an affinity for gold, so companies customise gold-plated phones or cars for them. Finally, behavioural segmentation focuses on consumer knowledge, attitude, and usage of products. For instance, products like Sunsilk Anti-Dandruff shampoo or Sensodyne Toothpaste cater to specific needs and preferences.
In today's globalised world, businesses aren't confined to one region or country. There are variations in demand based on location, time, and audience. Market segmentation helps businesses focus on specific customers, understand their needs, and cater to them effectively, making business goals achievable and resources usable optimally.
Md. Tajul Islam
Department of Marketing, Islamic University, Bangladesh
1999taju@gmail.com