Actually, as the high complexity of consumers today, marketers seldom use only one segmentation method to segments the whole market. Thus, we found that Tao Bao and eBay are tending to use multiple aspects, but it also has the most influential segmentation. First, in geographic segmentation, e-Bay segments the market based on the nation. For example, the apps will suggest the most popular products in different nations due to distinct preferences such as the clothes, shoes and accessories in the front page for American. The idea behind this is that people living in the same area share similar needs and wants. But, for Tao Bao, it focused on China most and segments the market base on the regions in mainland China.
Second, in demographic segmentation, both Tao Bao and eBay would like to divide the market into groups on variable, such as gander, family life cycle and income. So that the people in the same group will have similar response for a marketing action. And according to the psychographic segmentation, Tao Bao and eBay segments the market based on social class and personality characteristics. For instance, the eBay application provides clothes with different brand names for middle or high class customers.
And Tao Bao provides 12 categories of products for customers to choose, not matter they are fashion or casual. In behavioral segmentation, they try to divide buyers according to the different benefits they seek from the products. It’s called the perceived value. A teenager may consider the fashion of a dress whereas a woman may consider the durability of the dress. And in some special occasions, they will have some special promotions and labels for holidays or the changing garments of seasons because many customers will have similar needs and wants at that time.
The three major players in the soft drink market are PepsiCo, Inc., the Coca-Cola Company, and the Dr. Pepper Snapple Group (Change Lab Solutions, n.d.). All of them use effective market segmentation to target specific markets. Effective target marketing requires that marketers, segment the market, by identifying and profiling to find a distinct group of buyers who differ in their wants and needs ...