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

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

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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