Market segmentation
- 3. Market Segmentation Market segmentation is a process of dividing the market area in to different market on the basis of different characteristics. In other words Market segmentation is a process of sub- dividing the markets in to various groups. The main object is to dividing the market to give more attention to marketing activities.
- 4. Market Segmentation Segmenting international markets Segmenting business markets Segmenting consumer markets Requirements for effective segmentation
- 5. Market Segmentation Segmenting Consumer Markets Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation A. PEOPLE - ORIENTED APPROACH
- 6. Market Segmentation Segmenting Consumer Markets •Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods. •Geographic location is the usual and popular basis for market segmentation. Distinction between urban and rural markets is still of great importance in India. Now we have further distinction between the behavior of city families and that of suburban families Geographic segmentation
- 7. Market Segmentation Segmenting Consumer Markets • Demography is the study of population. Demographical characteristics are gender, age, marital status, number and age of children, place of residence and mobility of a household. • Socio-economic characteristics are income, education, occupation, family life- cycle, social class, religion and culture Demographic segmentation 1. Gender and Age 2. Family Life-Cycle 3. Social Class 4. Religion, Race and Culture
- 8. Market Segmentation Segmenting Consumer Markets •Psychographic segmentation divides a market into different segments based on social class, lifestyle, or personality characteristics. 1. Personality 2. Life Styles Psychographic segmentation
- 9. Market Segmentation Segmenting Consumer Markets •Behavioral segmentation divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product. •Behavioral Segmentation • Occasions • Benefits sought • User status • Usage rate • Loyalty status
- 10. B. PRODUCT - ORIENTED APPROACH Market Segmentation Segmenting Consumer Markets Use Pattern Benefits Pattern Brand/Store Loyalty
- 11. Market Segmentation Segmenting Consumer Markets Benefits of Segmentation 1. Market can be defined more precisely in terms of customer needs 2. Can formulate and implement marketing programmes according to demands in market 3. Identify strengths and weaknesses, accordingly serve the markets 4. More effective utilization of resources 5. Helps explore and exploit business opportunities, in line with market requirements Benefits of Segmentation
- 12. Market Segmentation Requisites of effective’s Segmentation MeasurableDefinable Viable Relevant Intensity in CompetitionReachable
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