MARKET SEGMENTAT NOTES FOR MBA STUDENTS

2.  A market segment consists of a group of
customers who share a similar set of needs &
wants.
 An ideal market segment meets all of the
following criteria:
 It is internally homogeneous (potential
customers in the same segment prefer the
same product qualities).
 It is externally heterogeneous (potential
customers from different segments have
basically different quality preferences).
 It responds similarly to a market stimulus.
 It can be cost-efficiently reached by market
intervention.

3.  GEOGRAPHIC SEGMENTATION
 DEMOGRAPHIC
SEGMENTATION
 PSYCHOGRAPHIC
SEGMENTATION
 BEHAVIORAL SEGMENTATION

4.  Geographical segmentation divides markets
into different geographical areas
 Marketers use geographic segmentation
because consumers in different areas may
display certain characteristics and
behaviours in that particular region

5.  MARKET IS DIVIDED INTO GROUPS ON THE
BASIS OF FOLLOWING VARIABLES:
 Age
 Family size
 Family life cycle
 Gender
 Income
 Occupation
 Education
 Religion
 Generation
 Nationality
 Social class

9.  Psychographics is the science of using
psychology & demographics to better
understand consumers
 Pyschrographics segmentation can be
broken down into lifestyle, social class,
and personality characteristics.

11.  Marketers divide buyers into groups on the basis
of their knowledge of, attitude towards, use of or
reaponse of/towards a product
 Variables:
 Occasions
 Benefits
 User status
 Usage rate
 Buyer readiness stage
 Loyalty status
 Attitude