1. WHAT ARE THE
REQUIREMENTS FOR
EFFECTIVE SEGMENTATION ?

2. STEPS IN SEGMENTATION
PROCESS
Shivam Verma || IIT Delhi
Needs-Based Segmentation
Segment Identification
Segment Attractiveness
Segment Profitability
Segment Positioning
Segment Acid Test
Marketing-Mix Strategy

3. BUT NOT ALL SEGMENTATION
SCHEMES ARE USEFUL
Shivam Verma || IIT Delhi
We need an effective segmentation criteria

4. EFFECTIVE SEGMENTATION
CRITERIA
Shivam Verma || IIT Delhi
Market segments must rate favourably on five key criteria:
Measurable
Substantial
Accessible
Differentiable
Actionable

5. MARKET SEGMENTS SHOULD ALSO
BE ATTRACTIVE IN THE LONG RUN
Shivam Verma || IIT Delhi
Michael Porter’s five forces can determine the intrinsic long-run
attractiveness of a market segment

6. MARKET SEGMENTS SHOULD ALSO
BE ATTRACTIVE IN THE LONG RUN
Shivam Verma || IIT Delhi
Threat of intense
segment rivalry
Threat of suppliers’
growing bargaining
power
Threat of substitute
products
Threat of new
entrants
Threat of buyers’
growing bargaining
power

7. THANK YOU