Page 130 - DMGT510_SERVICES_MARKETING

Unit 7: Service Segmentation and Targeting

Notes
Figure 7.1: Segmenting the Indian Market by Income

Source: NCAER, IDR, 1998, p. 63.

Education

Another factor that determines the needs and wants of the consumers is the level of awareness
and knowledge, which in turn depends on the education level.

Example: An uneducated person might not understand the cellular services available in
the market.

7.2.2 Geographic Segmentation

Under geographic segmentation the market can be segmented on the basis on countries, states,
cities, districts, urban areas, rural areas, etc. A region can be divided into north, east, south and
west. Countries have different gross domestic product, per capita income, standard of living,
lifestyle, culture, values, etc. All these things have to be considered while developing markets
segments. Markets can also be segmented on the basis of population and climatic conditions. All
these considerations are kept in mind while designing services or products for segments. In
Addition, marketers should also analyse the behavioural changes of the population that has
migrated.

Example: A tour operator can promote tour packages for hilly areas like Switzerland or
Canada to people in hot and humid regions like Middle-East.
7.2.3 Psychographic Segmentation

The marketer has to find out the basic characteristics which could influence the purchase decisions
of the individuals. For this, marketers can segment the market on the basis of lifestyles and
personality.

Lifestyles

The buying behaviour of individuals is largely influenced by their lifestyles. While segmenting
the market on the bases of lifestyle, marketers gain a sound understanding of customer’s way of
life, their activities, interest, opinions, beliefs and values. All this information will help the

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