Measurability Characteristics of a Market Segment

Behavioristic segmentation measures purchasing habits.

Marketers look for unique ways to make their products appealing to consumers. In many cases, what's appealing to one set of consumers doesn't appeal to another consumer set. Sometimes marketers choose to focus on product features and advertisements that appeal only to certain consumer subsets called market segments. A segment's members share certain characteristics and some of their similarities make a product appealing to them. A segment has measurable characteristics that help marketers determine its size and identify its key attributes.

Segmentation Measurement Techniques

Marketers use different types of research methods to collect data on their chosen market segments. Research types include exploratory, secondary and primary. Exploratory research is used to gauge general trends and outline possible segment characteristics. Secondary research is investigation into existing data on segment measurements. Secondary research comes from censuses, company records and previous consumer surveys. Primary research is conducted specifically for the marketer's current situation and segment. Primary research is either qualitative or quantitative. Quantitative research includes mass surveys of consumer behavior and characteristics. Quantitative research uses methods such as personal interviews and focus groups to gain in-depth opinions of market segment members.

Behavior

Markets can be segmented according to the purchase behavior of the consumers. This type of split is called behavioristic segmentation. Types of behavioral segments include user status, usage rate, purchase occasion and benefits sought. Behavioral segments tell marketers about the current characteristics of the segment, why and when they buy products, and how much they buy. Since behavioral segmentation relies on the current buying mood of segment members, many measurements for these segments can be found through secondary research. Data banks of retailers and other sources of purchase data hold the statistics of behavioral segments.

Demographics

Marketing demographics define people by population groups such as sex, age, occupation, education and ethnicity. Markets may combine demographics with geographic location to create a specific set of consumers. For example, a company may decide to target the advertisements for a new type of shoe to a segment of 25-to-34-year-old, middle-income females living in Chicago. Demographics measurements come from a combination of secondary and primary data. Censuses and other public surveys give some idea of demographic data, but primary research methods such as qualitative surveys offer more precise numbers.

Psychographics

Marketers split psychographic segments based on the personality and lifestyle of the segment members. Other segment attributes might include values, attitudes, feelings and inclinations. Since these factors are hard to measure, markets often attempt to pair psychographic data with specific demographic groups. Marketers usually use qualitative primary research to measure psychographic data. They use focus groups and personal interviews with demographic members and apply the findings to the larger segment.

References

• John Hopkins University: Market Analysis
• "Marketing Research, Ninth Edition"; David A. Aaker et al.; 2007
• "Contemporary Advertising, Eleventh Edition"; William F. Arens et al.; 2008
• University of North Texas: Defining Markets & Market Segments

Resources

• NetMBA: Market Segmentation