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6. Segmentation

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MARKET SEGMENTATION: As cited by Donald and Malcolm (2012) “market segmentation is the process of splitting customers, or potential customers, in a market into groups or segments”. Market segmentation is a process which defines and targets specific markets. It is method of dividing market into different groups of buyers which requires different products of marketing fixes. Market segmentation is concerned with identifying and satisfying specific user needs. It can include many types such as one product for all, some products for some and different products for everyone.

TYPES OF SEGMENTATION BASES:
According to Wedel and Kamakura (2000), there are four segmentation bases. They are geographic, demographic, psychographic and behavioral base. Geographic base depicts about dividing the market into different geographical units such as nations, regions, countries, cities and districts. Demographic base depicts in splitting the market into groups based on demographic, socio-economic variables like age, ethnicity, and gender etc. Psychographic segmentation explains in fragmenting the market into groups based on social class, life-style, values etc. Behavioral base segmentation is dividing the market into groups based on attitude, consumer knowledge, service offering, and response of product.

TARGETING OLD GENERATION:
In UK old people has a large customer base. Provided that there are more adults in UK over 50`s, delineating a huge market for business. Research by direct marketing agency millennium in 2008 pinpointed that 55 percent of over-50 suppose that advertising deliberate them in patronizing manner. Older will not be in a single segment. This type of market segment is very extensive, distinct and enigmatic. Generally old people switch their brands and suppliers if their needs are not met. They are also predisposed to discounting than anyone else.

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