market segmentation

1. MARKET
SEGMENTATION
By
Madhusudan M.

2. Meaning of market :
The word market is derived from
the latin word ‘Marcatus’ which
means trade, commerce,
merchandise, a place where
business is transacted .
In simple words, the meeting place
of buyers and sellers in an area is
called market.

3. Definition of Market
According to pyle “A market includes
both place and region in which buyers and
sellers are in free competition with one
another.”

4. Need for Market
● To exchange goods and services
● To adjust demand and supply by price mechanism.
● To improve the quality of the society.
● To introduce new modes of life.
● To develop product by enhancing market segment

5. Meaning of Segmentation
Market segmentation is a central process
dividing and groping your users based on the
commodities and share characteristics such as
interest, needs, wants and motivation.

6. Definition on Market Segmentation
Philip Kotler: “Market Segmentation is the sub-dividing of a
market into homogeneous subsets of customers, where any
subset may conceivably be selected on a market target to be
reached with a distinct marketing mix.”
William J. Stanton: “Market Segmentation consists of taking
the total heterogeneous market for a product and dividing into
several sub-markets or segments, each of which tends to be
homogeneous in all significant aspects.”

7. Aim of market segmentation
The aim of the market segmentation is to enable its
brands and to target their products, service, and context.
● Product to the right users
● Service at the right place
● Context at right time

8. Benefits of Market Segmentation
The purpose of market segmentation is to absolutely help your marketing efforts. However, the reasoning behind
why it’s worth spending time on segmentation goes beyond that. For example:
● 62% of advertisers, publishers, and tech developers name segmentation as a top priority when it comes to
successfully targeting ads. Better segmentation = higher return on investment from your campaigns.
● Segmentation leads to a better understanding of customer needs that can inform future product
development. It helps you to make better decisions by taking the wants and needs of your customer base
into account and shaping them into new offerings.
● It improves go-to-market planning and increases your chances of a successful launch.
● You’ll improve customer retention and acquisition. 44% of marketers use customer segmentation to decide
their acquisition strategy. 38% of them use market segmentation strategy, to determine their retention
strategy.
● Finally, as much as 81% of executives name market segmentation as an essential component of growing
profits.

10. Demographic: segmentation
Demographic segmentation : Segmentation of consumer based on
variables such as race
religion, community, language, age, stage in family cycle,
gender, marital status, family size, occupation, economic
position/income/purchasing capacity level, and social status ,of
the consumer demographic segmentation
● Age: Based on age on can have the 1) Infants 2) Child Market
Teen Market 3) Youth Market 4) Middle Aged Market 5)Elders
Market
● Genders: On the basis of gender, the consumer market may be
classified into male market female market.
● Social Class: Companion design their products and services for
particular social classes. There are three social classes: 1 Upper
classes 2. Middle classes 3. Lower class

12. Geographic Segmentation
Geographic – People who live in the same geographic area often have other similarities
beyond their location. They may share cultural experiences and preferences, be attracted to
similar trends, even have similar needs relating to local events. For example, if you owned a
clothing store, you might market clothing featuring designs by local artists for people living
within a certain area. To best use this method of segmentation, you’ll need to collect and
store location-related data about your customers.
● Location( country,state,city,urban,rural)
● Culture
● Climate
● Language

14. Behavioral segmentation
Behavioral – Behavioral segmentation is becoming more popular as
businesses are increasingly able to use big data to better understand
their customers. By tracking, purchasing patterns and on-site behavior,
for example, brands can curate product recommendations even
customize special offers for target audience members. We have to
handle this situation carefully and our communication should be in the
right way. But nowadays we do everything through online and so on.
● Example through on online store, website, and apps.

16. Psychographic Segmentation
Psychographic segmentation factors are slightly more difficult to
identify than demographics because they are subjective. They are not
data-focused and require research to uncover and understand.
For example, the luxury car brand may choose to focus on customers
who value quality and status. While the B2B enterprise marketing
platform may target marketing managers who are motivated to increase
productivity and show value to their executive team.

20. Reference
https://www.slideshare.net/sriprasadnavulla/market-segmentation-ppt-
49489547
https://www2.slideshare.net/deepu2000/market-segmentation-69710703/7
https://slidemodel.com/market-segmentation-the-right-way/
https://blog.alexa.com/types-of-market-segmentation/

21. Thank you
Have a nice day