This document defines market segmentation and discusses its purpose and types. Market segmentation involves dividing a market into subgroups of individuals or organizations that have similar needs, characteristics, or behaviors. The key purposes of segmentation are to increase marketing efficiency, maximize resources, select the most profitable segments, and find markets with limited competition. There are several ways to segment a market, including by geographic, demographic, psychographic, and behavioral factors. The document also outlines the segmentation process and levels of segmentation from mass to niche marketing.

1. Market Segmentation Raymund Sanchez

2. Content of the Lesson Definition of segmentation Purpose of segmentation Types of segmentation Segmentation process Levels of segmentation

3. Definition A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. it is distinct from other segments (heterogeneity across segments) it is homogeneous within the segment (exhibits common attributes) it responds similarly to a market stimuli it can be reached by a market intervention

4. Size, purchasing power, profiles of segments can be measured. Segments must be effectively reached and served. Segments must be large or profitable enough to serve. Measurable Accessible Substantial Differential Actionable Segments must respond differently to different marketing mix elements & actions. Must be able to attract and serve the segments.

5. Purpose Increase marketing efficiency by focusing marketing efforts to a particular group Maximize scarce marketing resources Find a market with limited competition Select the most profitable segment

6. Segmentation Criteria Geographic variables region of the world or country, East, West, South, North, Central, coastal, hilly, etc. country size/country size : Metropolitan Cities, small cities, towns. Density of Area Urban, Semi-urban, Rural. climate Hot, Cold, Humid, Rainy.

7. Segmentation Criteria 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. Demographic Criteria Demographic variables age gender sexual orientation family size family life cycle education income occupation education socioeconomic status religion nationality / race language

9. Psychographic Criteria Psychographic variables personality life style value attitude

10. Behavioral Criteria Behavioral variables benefit sought product usage rate brand loyalty product end use readiness-to-buy stage decision making unit profitability income status

11. Market Segmentation Process Determine the characteristics of segments in the target market & separate these segments in the market based on these characteristics. Verify the market segments size if adequate enough to support the organization's product. Develop a marketing strategy to target this market.

12. Market Segmentation Process 1. Identify Bases for Segmenting the Market 2. Develop Profiles of Resulting Segments 3. Develop Measures of Segment Attractiveness 4. Select Target Segment(s) 5. Develop Positioning for Each Target Segment 6. Develop Marketing Mix for Each Target Segment Market Positioning Market Targeting Market Segmentation

13. Levels of Segmentation Mass Marketing Same product to all consumers (no segmentation) Segment Marketing Different products to one or more segments (some segmentation) Micromarketing Products to suit the tastes of individuals or locations (complete segmentation) Niche Marketing Different products to subgroups within segments ( more segmentation)

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