Methods for Segmenting Markets

Describing segments is the second step in the Segmentation$-$Targeting$-$Positioning process. In this step, firms break down the entire market into segments with similar qualities, using a variety of methods and tools.

There is no single best way to segment a market. Firms choose methods based on the type of goods$/$services they offer and on their goals. For instance, if the firm wants to identify its customers easily, geographic or demographic segmentation likely will work best. But if it wishes to dig deeper into why customers might buy its offering, then lifestyle, benefits, or loyalty segmentation are more appropriate. Geodemographic segmentation provides a blend of geographic, demographic, and psychographic approaches. Typically, a combination of several segmentation methods is most effective.

Read and match each statement to the segmentation method it exemplifies.