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BECAUSE I DO NOT HAVE A BOOK HERE IS AN EXAMPLE OF A GUEST ANSWER…..
Market segmentation is the process of dividing the broad and common market into different groups as according to the common needs and interest of the customers and it includes designing and implementation of the strategies to target the customers. Suppose we have to segment the market for the health care product like health insurance. For this product, I would like to recommend to segment the market on the basis of the following:
It will help in marketing the right health insurance to the right people on the basis of geographic, demographic, psychographic and behavioristic traits.
I would recommend the most effective market for the health insurance product, the high income earners and educated population. It would be easy to target them and to define the benefits of the product to them. High income profile people will easily buy the product and would able to pay the premium of the insurance.
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