04/13/2023
1
Market Segmentation
Presented By:
Patel Chintan
04/13/2023
2
Definition
Market Segmentation is a method of “dividing a market (Large) into smaller groupings of consumers or organizations in which each segment has a common characteristic such as needs or behavior.”
04/13/2023
3
Level Of Market SegmentationSegment MarketingNiche MarketingLocal MarketingGeographic segmentation
04/13/2023
4
The Need For Marketing Segmentation
The marketing concept calls for understanding customer and satisfying there needs better than the competition.
Different customers have different needs, and its rarely possible to satisfy all the customers by treating them alike.
04/13/2023
5
Segment Marketing Consists of a group of customers who share a
similar set of needs and wants. Identifiable Group with in a Market with
Similar• Wants• Purchasing Power• Geographical Location• Buying Attitudes
04/13/2023
6
Niche Marketing A Niche is a narrowly defined group of
customers seeking unique solution. Niche segment consists of buyers with high purchasing power, who have unique needs and strong motivation to fulfill their needs.(Ex:Ezee)
Local Marketing It is done to satisfy the needs of local
people. For example : Spiderman movie was
released in India in different languages.
04/13/2023
7
Individual Marketing It is also known as “One to one marketing”. It is used to satisfy the individual needs of
customers. (For Example: Asian and Nerolac paints
allow customers to mix and match the colours of their choice.)
04/13/2023
8
Criteria For Market Segmentation
Indefinable: the differentiating attributes of the segments must be measurable so they can be identified.
Accessible: the segments must be reachable through communication and distribution channels.
Unique needs: to justify separate offerings, the segments must respond differently to different marketing mixes.
Substantial: the segments should be sufficiently large to justify the resources required to target them.
Durable: the segments should be relatively stable to minimize the cost of frequent changes.
04/13/2023
Market Segmentation9
Geographic Demographic Psychographic Behavioral
Demographic Operational
variables Purchasing
approaches Situational factors Personal
characteristics
Consumer market Industrial market
04/13/2023
10
Geographic segmentation
Regions: by continent, country, state or even neighborhood
Size of the area: segmented according to size of population
Population density: often classified as urban, suburban, or rural
Climate: according to weather patterns common to certain geographic regions
04/13/2023
11
Demographic segmentation
Demographic segmentation consists of dividing the market into groups based on variables such as: Age Gender Income Social class Life style
04/13/2023
12
Age : Marketers design, package and promote products differently to meet the wants of different age groups. Good examples include the marketing of toothpaste
(contrast the branding of toothpaste for children and adults) and toys (with many age-based segments).
Gender: Gender segmentation is widely used in consumer marketing. The best examples include clothing, hairdressing,
magazines and toiletries and cosmetics. Income: Many companies target affluent
consumers with luxury goods and convenience services. Good examples include Coutts bank; Moet &
Chandon champagne and Elegant Resorts - an up-market travel company.
04/13/2023
13
Lifestyle: Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. Unfortunately, there are many different lifestyle categorization systems, many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns.
04/13/2023
14
Psychographic segmentation Psychographic segmentation groups
customers according to their lifestyle. Activities, interest, and opinions (AIO) surveys are one tool for measuring lifestyle. Activities Interest Opinion Values
04/13/2023
15
Behavioral Segmentation
Behavioral segmentation is based on actual customer behavior towards products. Some behavioralistic variable include: Opinions, interests and hobbies Degree of loyalty Occasions Benefits sought Usage
04/13/2023
16
Opinions, interests and hobbies – this covers a huge area and includes consumers’ political opinions, views on the environment, sporting and recreational activities and arts and cultural issues.
Degree of loyalty – customers who buy one brand either all or most of the time are valuable to firms.
Occasions – this segments on the basis of when a product is purchased or consumed.
04/13/2023
17
Industrial base segmentation
Demographic Industry Company size Location
Operating variables Technology User status Customer
capabilities
04/13/2023
18
Industrial base segmentation Purchasing approaches
Purchasing function organization(Centralized or decentralized)
Power structure(engineering dominated or financially dominated
Nature of existing relationship Purchasing criteria(Quality,
price,service)
04/13/2023
19
Industrial base segmentation Situational factors
Urgency Specific application Size of order
Personal characteristics Buyers &sellers similarities Attitude towards risk loyalty
04/13/2023
20
Thank You…
Top Related