Market Segmentation

There are various ways to segment your market. These may include:

• Demographically - according to the age structure of the population
• Geographically - by country or region or area
• Behaviouristically - according to the nature of the purchase, the use the product is put to, the loyalty to the brand and so on
• Benefit - according to the use and satisfaction gained by the consumer
• Socio-economically - according to social class and income levels

Clearly some of these are more relevant than others to Cameron Balloons. For a further analysis of this, why not look at the worksheet on market segmentation?

The firm can then use this information to draw up a segmentation map. This is a tool for analysing the market and helping to identify market opportunities. Any one of the criteria above could be used to draw up a map. For example, Cameron's may want to look at the behaviouristic split of their market. They could draw up a segmentation map:

	Flying
Amateur		Professional
	Sponsorship

On this map they could plot where their various groups of customers tend to be. The amateur balloonists who buy balloons just for the enjoyment of flying would appear in the top left-hand segment of the map. Professional operators who take fare-paying passengers would be opposite them in the top right-hand segment. For more details on the nature of the customers and their different demands, have a look at the marketing explanation.