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Market segmentation of the
consumer market in South Africa
J.H. Martins
Bureau of Market Reserach
ABSTRACT
The consumer market can be segmented in various ways. This article concentrates on the calculation
of the size of the South African consumer market, segmented by geographical area and
demographic characteristics of households. Geographical segmentation is shown by province while
the size of the South African consumer market is shown by population group, income group, life stage
and life plane. The determining factors in segmentation of households by life plane and life stage are
the level of education and age of the head of the household. Six life planes and five life stages are
distinguished. In the absence of national expenditure data by Living Standards Measure (LSM®)*
group, segmentation by LSM group is explained by means of expenditure data of households in
Gauteng. Ten different LSM groups can be distinguished, depending on the amenities owned by the
household, services used by them and where they live. Segmentation by type of outlet where
consumers spend their money is explained in the article according to two major types of outlets
namely, formal and informal outlets, each further subdivided into four groups.
® ® ®
* LSM , SAARF and AMPS are all registered trademarks. For covenience, these are indicated as such only on their first
occurrence in the text. Later occurrences are deemed to refer to the registered trademarks.
Business people often use the term market to Botswana market)
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