In Module 2 you learned how to define your industry, and identify who made up your markets. We defined a market segment as a group that has similar identifiable characteristics, with similar needs and wants, and behaves in a similar manner. But what exactly does this mean? How do we decide what the different segments in a market are?

There are numerous different characteristics that can be used to group people into different market segments, and many techniques have been developed to help businesses choose segments. But it is far from an exact science. It will be up to you to decide on the criteria for definition of your market segments. However, here are some characteristics commonly used:

Geographic

• region of the world or country
• rural or urban area
• country size

Demographic

Psychographic

• personality
• life-style
• values
• attitudes

Behavioural

• benefit sought
• product usage rate
• brand loyalty
• product end use
• readiness-to-buy stage

Case Study - Market Segment: Chasing Plastic