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I agree with Mr.Vinod answer.
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Breakdown by any combination: age, gender, income, education, ethnicity, marital status, education, household (or business), size, length of residence, type of residence or even profession/Occupation.
An example is Firefox who sell 'coolest things', aimed at younger male audience. Though, Moshi Monsters however is targeted to parents with fun, safe and educational space for younger audience.
This refers to 'personality and emotions' based on behaviour, linked to purchase choices, including attitudes, lifestyle, hobbies, risk aversion, personality and leadership traits. magazines read and TV.
An example is Virgin Holidays who segment holidays into 6 groups.
This refers to Hobbies, recreational pursuits, entertainment, vacations, and other non-work time pursuits.
Companies such as on and off-line magazine will target those with specific hobbies i.e. FourFourTwo for football fans.
Refers to Religious, political, nationalistic and cultural beliefs and values.
The Islamic Bank of Britain offers Sharia compliant banking which meets specific religious requirements.
Life Stages is the Chronological benchmarking of people’s lives at different stages.
An example is Saga holidays which are only available for people aged 50+. They claim a large enough segment to focus on this life stage.
Drill down by Country, region, area, metropolitan or rural location, population density or even climate.
An example is Neiman Marcus, the upmarket department store chain in the USA now delivers to the UK.
Refers to the nature of the purchase, brand loyalty, usage level, benefits sought, distribution channels used, reaction to marketing factors.
In a B2B environment, the benefits sought are often about ‘how soon can it be delivered?’ which includes the ‘last minute’ segment - the planning in advance segment.
An example is Parcelmonkey.co.uk who offer same day, next day and international parcel deliveries.
Benefit is the use and satisfaction gained by the consumer.
Smythson Stationary offer similar products to other stationery companies, but their clients want the benefit of their signature packaging: tissue-lined Nile Blue boxes and tied with navy ribbon!