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Market segmentation
- 1.
- 2. Topic Inventory • Whatis Market Segmentation? • Successful Segmentation. • Variables Used for Segmentation. • Using Segmentation in Customer Retention
- 3. What is MarketSegmentation? • 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 • Homogeneitywithin 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 forSegmentation • Geographic variables • Demographic variables • Psychographic variables • Behavioral variables • Technographic segmentation variables
- 6. Geographic variables – Regionof 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 – Benefitsought – 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 inCustomer 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?