Final answer:
Companies can use various segmentation criteria/types such as demographic, psychographic, behavioral, and geographic to divide their target market into distinct groups.
Step-by-step explanation:
A company can use various segmentation criteria to divide its target market into distinct groups. Some of the common segmentation criteria/types include:
- Demographic: This segmentation criterion divides the market based on demographic factors such as age, gender, income, occupation, education, and ethnicity.
- Psychographic: This segmentation criterion considers the psychological and lifestyle characteristics of individuals, including their values, attitudes, interests, and activities.
- Behavioral: This segmentation criterion focuses on consumer behavior, dividing the market based on variables such as purchase frequency, loyalty, usage rate, and benefits sought.
- Geographic: This segmentation criterion divides the market based on geographic factors such as location, climate, population density, and regional preferences.
These segmentation criteria help companies identify and target specific customer segments with tailored marketing strategies and offerings.