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Additional Information

1. Since markets are saturated with diverse merchandise which give the

2. consumer unprecedented choices, mass marketing falls short of reaching the

3. needs of a target market. As a result, after 1960, market segmentation addressed

4. a strategy which directs all the marketing promotion to identify the needs of a

5. certain group of consumers and evaluates the future potentials for expansion

6. of a product.

7. Four essential factors must be considered for market segmentation strategy to

8. be effective. Market segmentation breaks up consumers of a product on the

9. basis of demographic characteristics, which include income, age, ethnic

10. background, marital status, and life cycle. Psychographics takes into account the

11. consumers' behavior pattern. Geographical region segmentation is concerned

12. with the location of the product, the size of region, the population density, and

13. the climate characteristics. Usage pattern segmentation concentrates on the

14. amount of the product sold to all potential buyers, for instance, first-time users

15. or frequent users.

16. Market segmentation in business consists of two distinct areas:

17. macrosegmentation and microsegmentation. Macrosegmentation includes the

18. individual areas of a market segment , for instance, usage pattern and customer

19. type. Microsegmentation, however, is involved in the decision-making areas

20. of microsegmentation and can exactly interpret the target markets.

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