ABSTRACT
This chapter examines the various bases for market segmentation and the classifications and characteristics of several important e-marketing segments. It provides examples of product differentiation and positioning strategies for e-marketing. Marketing segmentation is the process of aggregating individuals or businesses along similar characteristics that pertain to the use, consumption, or benefits of a product or service. The result of market segmentation is groups of customers called market segments. Marketers can base their segmentation of consumer markets on demographics, geographic location, psychographics, behavior, and many combinations of these. Within each base, many segmentation variables come into play. The four consumer market segmentation bases are demographics, geographic location, psychographics, and behavior with respect to the product. Each basis is further refined into segmentation variables such as age and gender variables within demographics. The internet is an excellent way to gather people with similar interests and tasks into online communities for effective targeting.
