University Essay: Segmentation Variables in Business Markets Analysis

This essay delves into the concept of segmentation variables within business markets, primarily based on the theories proposed by Philip Kotler. It categorizes these variables, including geographic region, city size, income levels, family size, and educational background, emphasizing how these factors facilitate market segmentation. The discussion further outlines the steps involved in the market segmentation process, from determining segment needs and identifying target markets to assessing profitability and refining marketing strategies. The essay highlights the importance of integrating segmentation techniques into the overall marketing strategy to gain a competitive edge and maximize profits. It concludes by reiterating the significance of market segmentation as a fundamental tool for marketers to understand customer preferences and adapt strategies accordingly, ensuring market leadership and financial success.

Running Head: SEGMENTATION VARIABLES FOR BUSINESS MARKETS
Segmentation Variables For Business Markets
Name Of The Student
Name Of The University
Author Note

1SEGMENTATION VARIABLES FOR BUSINESS MARKETS
Introduction:
Segmentation variables refer to the various ways by which the market can be
segmented according to various factors. The theory of Segmenting variables for business
markets was first proposed by Phillip Kotler. These variables make it easier to segment the
market in various ways.
The purpose of this essay is to explain the segmentation variables used in the business
markets.
Discussion:
Market Segmentation Variables:
As stated by Kehinde (2016), segmentation variables for the business markets by
Philip Kotler can be categorized in the following variables. These are as follows: -
Geographic Region: Geographic Region refers to the segmentation process that is related to
the geography of an area. More the number of customers in an area, it will be easier to
segment the market in the area.
City or metro size: City or metro areas are another important factors to consider when
segmenting the market. Market Segmentation depends on the size of markets in the city or
metro areas.
Income: Income is another of the factors to consider when segmenting a market. It depends
on the income of the particular member of the family who earns it.
Family Size: Another factor to consider when segmenting a market is the family size. The
market segmentation depends on the size of the family.

2SEGMENTATION VARIABLES FOR BUSINESS MARKETS
Education: Education is one of the other factors that is to be considered when segmenting a
market area. Market can be segmented depending on the educational qualifications of the
individuals.
Steps In Market Segmentation Process:
As stated by Kotler (2015), a market Segmentation process has the following steps.
These are as follows:
Determine the needs of the segment:
This step involves understanding what the needs and demands of the particular market
segment are.
Identifying the market segment:
This step involves understanding the customers that will be interested in purchasing
the seller’s product than other competitors in the market place.
Which is the most attractive segment?
In this step, it is important for the marketer to understand that out of all the products
available in the marketplace, which ones the customers are more interested in purchasing.
Is the segment earning any profit?
In this step, the marketer has to understand whether the product that he/she sells are
earning any profits or not. If it is found that the product is not earning any profit, then the
marketer needs to change it as soon as possible.
Positioning the segment:
In this step, the marketer needs to decide how he should position his product in the
market so that the product can earn maximum profits compared to the customers.

3SEGMENTATION VARIABLES FOR BUSINESS MARKETS
Expanding the segment:
In this step, the marketer needs to decide how he can expand his products to sell them
another market to earn more profits than the competitors.
Combining the segmentation in marketing strategy:
In the last step of the segmentation process, the marketer must always combine the
various segmentations he made into his marketing strategy so that it becomes highly
successful in the marketplace and can earn maximum profits compared to other competitors
in the marketplace.
Conclusion:
Thus, from the above essay, it can be concluded that market segmentation variables as
proposed by Phillip Kotler, is one of the essential tools of segmenting the market. The market
segmentation strategies help the marketer to understand which product the customers are
interested in the marketplace. The marketer must thus combine his segmentation techniques
into his marketing strategy so that he can always stay ahead of the competitors in the
marketplace and can earn large profits while being a leader in the particular marketplace
where he sells his products.

4SEGMENTATION VARIABLES FOR BUSINESS MARKETS
Reference List:
Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of
Marketing Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
Higher Armstrong, G., Kotler, P., Buchwitz, L. A., Trifts, V., & Gaudet, D. (2015).
Marketing: an introduction.
Kehinde, O. J., ADEGBUYI, O., Akinbode, M., & Borishade, T. T. (2016). Marketing
Concept And The Satisfaction Of Consumer Needs: The Nigerian Consumers’
Experience. Researchjournali’s Journal of Marketing, 4(1).
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing. Pearson
Education AU.