Segmentation

According to The Marketing Plan Handbook, market segmentation is the process of grouping customers within a market according to similar needs, habits, or attitudes that can be addressed through marketing. A smaller segments with distinct needs or benefit requirements within a segment is called niches. Segmentation facilitates consumer obsession as marketing campaign is directed to the specific needs/benefits of the consumers, it is not one model for all or one size fit all.

There are four factors which firm need to consider when segment a consumer market, they are listed below:

• behavioral and attitudinal variables: this is the best way to identify a consumer group for marketing purposes. Examples include benefits required or expected, usage occasion and status, loyalty status, technological orientation etc.
• demographic variables: these are common and easily identified consumer characteristics. Examples include age, gender, household size, income etc.
• geographic variables: this may cover a single neighborhood or an entire continent. Examples include location, distance, climate etc.
• psychographic variables: helps to gain a deeper understanding of what and why consumers buy. Examples include lifestyle, activities, interests etc.

Three out of the four factors above should be consider when applying segmentation to business markets, they are behavioral and attitudinal variables, demographic variables and geographic variables.

When thinking of an academic library, the following three factors seem to be useful when applying segmentation:

• behavioral and attitudinal variables: graduate students look for a quiet place to study; undergraduate students look for group study rooms for group work. Faculty look for convenient way to get journal articles.
• demographic variables: age, gender
• geographic variables: residential students, commute students, international students