Applying Segmentation to Consumer Markets
The idea of a "one-size-fits-all" marketing strategy is no longer viable for most marketers targeting U.S. consumers. Even though it would be less expensive for firms to create one marketing mix and offer that to all consumers, this strategy would be very ineffective because there are so many differences among people. Market segmentation is the process by which prospective consumers are aggregated into groups that have (1) common needs and (2) similar responses to marketing actions. The results of the segmentation process are market segments consisting of people who are relatively similar to each other in terms of consumption behavior.
There are four general bases of segmentation for U.S. consumer markets: geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. Geographic segmentation is region-based, demographic segmentation is attribute-based, psychographic segmentation is lifestyle-based, and behavioral segmentation is action-based.