PPT ON Market segmentation

1. PROF SUMA SOMASAGAR
DEPARTMENT OF COMMERCE
SUBJECT:- PRINCIPLE OF MARKETING

2. Market Segmentation

3. Definition
 Market Segmentation:
 Dividing a market into distinct groups with distinct
needs, characteristics, or behavior who might
require separate products or marketing mixes.

4. •Better matching customer needs
•Higher profits
•Better Growth
•Retaining Old customers
•Effective Marketing
Communication
•To increase market share

5. Factors affecting Segmentation
 Size of the company
 Objectives of the company
 Resources
 Type of the product
 Competition
 Nature of Market
 Life cycle stage of the product

6. Requirements for Segmentation
 Accessibility
 Measurable
 Viable
 Competition
 Differentiable
 Actionable

7. Step 1. Market Segmentation
Bases for Segmenting Consumer Markets
Geographic
Demographic
Age, gender,
family size and
life cycle, or
income
Psychographic
Social class, lifestyle,
or personality
Behavioral
Occasions, benefits,
uses, or responses
Nations, states,
regions or cities

8. 4 - 8
Examples: Segmenting Using Geographics
Geographic:
Region South, East, West, North,
Central
City size Under 25,000; 25,001-100,000;
100,001-500,000;
500,001-1,000,000; etc.
Urban-rural Urban, suburban, rural, farm
Climate Mountainous, seacoast,
rainy, cold

9. 4 - 9
Demographic:
Income Under Rs10,000; Rs10,001-Rs25,000;
Rs25,001-Rs35,000; Rs35,001-Rs50,000;
over Rs50,000
Age Under 6, 6-12, 13-19, 20-34, 35-49,
50-64, 65 and over
Gender Male, female
Family life cycle Young, single; young, married, no
children, etc.
.
Education Grade school only, high school graduate,
college graduate, university graduate
Occupation Professional, manager, clerical, sales,
student, homemaker, unemployed
Examples: Segmenting Using
Demographics

10. 4 - 10
Psychographic:
Personality Ambitious, self-confident,
aggressive,
introverted, extroverted, sociable
Lifestyle Activities (golf, travel); interests
(politics, art);
opinions (conservation, capitalism)
Social Class: Upper, upper middle, lower middle,
etc.
Examples of Psychographic and
Behavioural Segmentation

11. Examples of Psychographic and
Behavioural Segmentation
Behavioural:
Benefits desired Examples vary widely depending on
product: appliance — cost, quality,
operating life; toothpaste — no cavities,
plaque control, bright teeth, good taste,
low price
Usage rate Nonuser, light user, heavy user

12. Market Segmentation
Bases for Segmenting Industrial / Business Markets
Bases
for Segmenting
Business
Markets
DemographicsPersonal
Characteristics
Situational
Factors
Operating
Characteristics
Purchasing
Approaches

13. Market Aggregation
 Marketing a product to the largest audience possible
this leads to heavy exposure of the brand and product.

14. THANK YOU