In the market there are different factor required to improve the productivity level of the organization. One of such factor is the income segmentation which helps the companies to improve it strategies of selling their products and make improve in their revenue. In the income segmentation the most important things is the division of the customer. As there are a lot of different customer in the market and each and every of them has their unique and different requirements. Thus on the bases of this requirements they are divided into different groups. The groups are making on the bases of age, gender and life style. Along with this different organization also pay attention on the segmentation of the market on the bases of income. For this reasons most of the companies provide the best and convenience services to their customers for their high satisfaction. In addition to this they also provide the luxury products for the specific customer. As most of the people do not support or can avail such expensive products thus in order to gain the satisfaction from the middle class people they also provide some low cost products.
Income Groups or Segments
In most of the condition the income segmentation have three main groups i.e. high income groups, mid or middle income groups and low incomes groups.
High income Groups
As we observe the market there are very few high level income groups, although they are the most effective groups in the market as they are the people who wish to buy the expensive products of the organization have the most perfect quality. They do not see the quantity but focus on the quality only. Most of the luxury product customers are the high income groups.
Mid income Groups
[large]Throughout the globe we have a lot of middle class families and they may not afford the high expensive products, for this reasons different companies have different low cost products which can be affordable and provide different advantages to such people. as the number of middle class families are more than high income peoples thus most of the organization depend on such people to have their concentration and to move them towards their products and to give them maximum satisfaction.
Low Income Groups
There are more than 50 percent of people who live their life in poverty. This means that most of the people do not have sufficient income to by the products which are expensive. For such people the quantity of the product have more advantage than the quality as they do not have sufficient resources to get the high level and the best quality product for themselves. Thus most of the companies have certain attention on such customers to ensure them and to gain maximum satisfaction from such products which they can improve their life style.
Conclusion
For most of the organization the income segmentation is very important it is the method through which they understand the requirements of the customer and to make their life style better.
References
Tutor 2 u. (2012). Website: http://www.tutor2u.net/business/marketing/segmentation_bases_demographic.asp Retrieved on 30th June, 2013
Management study guide. (2013). Website: http://www.managementstudyguide.com/market-segmentation.htm Retrieved on 30th June, 2013
MBASKOOL. (2012). Website: http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1728-income-segmentation.html Retrieved on 30th June, 2013