Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics

1. Market segmentation

2. Topic Inventory
• What is Market Segmentation?
• Successful Segmentation.
• Variables Used for Segmentation.
• Using Segmentation in Customer Retention

3. What is Market Segmentation?
• A market segment is a group of people or
organizations sharing one or more
characteristics that cause them to have
similar product and/or service needs.

4. Successful Segmentation
• Homogeneity within the segment
• Heterogeneity between segments
• Segments are measurable and substantial
• Segments are differentiable
• Segments are accessible and actionable
• Target segment is large enough to be
profitable

5. Variables Used for Segmentation
• Geographic variables
• Demographic variables
• Psychographic variables
• Behavioral variables
• Technographic segmentation variables

6. 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. Demographic variables
– Age
– Gender Male and Female
– Family size
– Family life cycle
– Education Primary, High School, Secondary, College,
Universities.
– Income
– Occupation
– Socioeconomic status
– Religion
– Nationality/race (ethnic marketing )
– Language

8. Psychographic variables
– Personality
– Lifestyle
– Value
– Attitude

9. Behavioral variables
– Benefit sought
– Product usage rate
– Brand loyalty
– Product end use
– Readiness-to-buy stage
– Buying center
– Profitability
– Income status

10. Technographic segmentation
variables
– Motivations
– Usage patterns
– Attitudes about technology
– Fundamental values
– Lifestyle perspective
– Standard of living
– Profit is there in business from the existing
clients

11. Using Segmentation in Customer Retention
• Tag #1: Is this customer at high risk of
canceling the company's service? (Or
becoming a non-user)
• Tag #2: Is this customer worth retaining?
• Tag #3: What retention tactics should be
used to retain this customer?