First narrow down the market by eliminating inappropriate or unwanted groups. Then screen out groups that would not use your product. Next identify and apply one or more variables to segment your market using marketing research. Consumer Market Variables a. Demographic segmentation is a way of creating smaller groups within a larger market using variables, such as age and income, that describe the population.
Many marketers combine demographic variables to identify suitable segments.
Demographic information about people in some countries may be outdated or sketchy. It is important to avoid faulty assumptions that can derail segmentation. Geographic segmentation is a way of grouping people within a market using geographic variables such as countries or regions. Multinational companies use geographic segmentation to focus on how consumer needs differ by country. These are grouped according to population size instead of geography.