This document provides an overview of market segmentation. It defines market segmentation as breaking down potential buyers into homogeneous groups. The benefits of segmentation include identifying new product opportunities, designing effective marketing programs for groups, and improving resource allocation. Different customers have different needs, so segmentation allows targeting specific groups rather than treating all customers the same. Segments must be measurable, accessible, have unique needs, be large enough to target, and be relatively stable over time. Common bases for consumer segmentation include geographic, demographic, psychographic, and behavioral factors.

1. A PRESENTATION ON
BASIS OF
MARKET SEGMENTATION
Submitted by:-
MITHISAR
NIT SILCHAR

2. What is MARKET
SEGMENTATION?
 The breaking down or building up of
potential buyers into groups called
MARKET SEGMENTATION.

3. Benefits of MARKET
SEGMENTATION:
 Identifies opportunities for new product
development.
 Helps design marketing programs most
effective for reaching homogeneous
groups of buyers.
 Improve allocation of marketing resources.

4. The need for MARKETING
SEGMENTATION :
 The marketing concept calls for understanding
customers and satisfying their needs better then
the competitor.
 Different customers have different needs, and it
is rarely possible to satisfy all the customers by
treating them alike.

5. Difference between a MASS MARKET & TARGET
MARKET:
 Mass Market refers to treatment of the market
as a homogeneous group and offering the same
marketing mix to all customers.
 Target Market on the other hand recognizes the
diversity of the customer and does not try to
please all of them with same offering.

6. Requirements of MARKET SEGMENTS
 Indefinable : The differentiating attributes of the
segments must be measureable so they can be
identified.
 Accessible : The segments must be reachable through
communication and distribution channels.
 Unique needs : To justify separate offerings, the
segment must respond differently to the different market
mixes.
 Substantial : The segment should be sufficiently large
to justify the resources required to target them.
 Durable : The segment should be relatively stable to
minimize the cost of frequent changes.

7. Bases for Segmentation in
Consumer Markets :
1. GEOGRAPHIC.
2. DEMOGRAPHIC.
3. PSYCHOGRAPHIC.
4. BEHAVIORALISTIC.

8. GEOGRAPHIC
SEGMENTATION
Geographic Segmentation tries to divide markets
into different geographical units.
 Region.
 Size of the area.
 Population density.
 Climate.

9. DEMOGRAPHIC
SEGMENTATION
Demographic segmentation consists of dividing
the market into groups based on variables such
as :
 Age.
 Gender.
 Income.
 Social class.

10. PSYCHOGRAPHIC
SEGMENTATION
Psychographic segmentation groups customers
according to their lifestyle. Activities, interests
and opinions (AIO) surveys are tool for
measuring Lifestyle.
 Activities.
 Interest.
 Opinion.
 Values.

11. BEHAVIORISTIC
SEGMENTATION
Behavioristic segmentation is based on the
actual customer behavior towards products.
 Opinion, interests and hobbies.
 Degree of loyalty.
 Occasions.
 Benefits sought.
 Usage.