Market segmentation, requirements of effective segmentation, and bases for segmenting the shoe market

Definition of market segmentation

Market segmentation means splitting a varied market into smaller groups of buyers who want different things or buy in different ways, so that each group can be given its own product or programme. Each group, or segment, is relatively similar within itself and different from the others, so the firm can serve it with a tailored marketing mix.

Requirements of effective segmentation

1. Substantial. The segment must be big enough, or spend enough, to repay a programme of its own.
2. Differentiable. It must respond to marketing differently from other segments; otherwise there is no point in separating it.
3. Measurable. Its size, buying power and profile must be estimable from the data available.
4. Accessible. The firm must be able to reach it through channels and media it can use.
5. Actionable. The firm must have the resources and skills to build a programme that wins it.
6. Stable. Its features must last long enough to justify the effort.

Bases for segmenting the shoe market

1. Demographic bases.
   • Age: children (school shoes, light and durable), teenagers (trendy sneakers), adults (office and casual shoes), elderly (comfort and orthopaedic shoes).
   • Gender: men's, women's and unisex designs.
   • Income: economy (rubber chappals and canvas shoes), mid-range branded shoes, premium leather and designer shoes.
   • Occupation: safety shoes for factory and construction workers, formal shoes for executives, uniform shoes for security staff and students.
2. Geographic bases.
   • Climate: sandals and open footwear for hot, humid regions; boots for cold and hilly regions; waterproof footwear for monsoon-prone areas.
   • Urban and rural: fashion and sports shoes in cities; durable, low-cost footwear in villages.
3. Psychographic bases.
   • Lifestyle: fitness enthusiasts (running and training shoes), outdoor adventurers (trekking boots), fashion-conscious buyers (designer heels, sneakers).
   • Personality and social class: status-seekers choosing premium international brands; practical buyers choosing comfort.
4. Behavioural bases.
   • Occasion: everyday wear, office, sports, weddings and festivals, parties.
   • Benefits sought: comfort, durability, style, performance, health (diabetic footwear), low price.
   • Usage rate and loyalty: heavy users such as athletes; brand-loyal buyers versus switchers.

A shoe company may combine these, for example targeting urban, fitness-conscious young adults (demographic, geographic and psychographic) seeking performance running shoes (behavioural). It would then design lightweight, cushioned shoes, price them in the mid-to-premium range, sell them through sports stores and online, and promote them through running clubs and fitness influencers. A second segment, school children, would need a quite different product, price and channel, which shows why segmentation matters.

Conclusion

Segmentation is useful only when the segments are worth serving, distinct, measurable, reachable and within the firm's ability to serve. The shoe market lends itself to segmentation on all four bases because footwear needs vary greatly with age, climate, lifestyle and occasion.