Market segmentation is the practice of dividing your target market into approachable groups. Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioral criteria used to better understand the target audience. Splitting up an audience in this way allows for more precisely targeted marketing and personalized content.

1. MARKET SEGMENTATION
NITESH KUMAR
B.PHARM [VIII SEM]
PHARMACEUTICAL MARKETING MANAGEMENT
JAIPUR COLLEGE OF PHARMACY, JAIPUR

2. Market Segmentation
What is Market?
A market is a place which allows the purchaser and the seller to
invent and gather information’s and lets them carry out exchange
of various products and services.
In other words the Meaning of Market refers to a place where the
trading of goods takes place.

3. MARKET SEGMENTATION
A marketing concept which divides the complete market set up
into smaller subsets comprising of consumers with a similar taste,
demand and preference is called as market segmentation.
• One market segment is totally distinct from the other segment.
What is the need?
• Facilitates right choice of target market.
• Facilitates effective tapping of the chosen market.
- Helps the marketer develop marketing programs/offers
that are most suited to each segment’s.
• Makes the marketing effort more efficient and economic.
- Ensures that the marketing effort is concentrated on
selected and well-defined segments.

4. • Helps identify less satisfied segments and concentrate on them.
• Identifies opportunities for new product development.
Requirement of market segments
• Unique needs – To justify separate offerings.
• Durable – Relatively stable to minimize the cost of frequent
changes.
• Substantial – Sufficiently large to justify the resources required to
target them.
Bases for segmentation in consumer markets
• Geographic
• Demographic
• Psychographic
• Behavioralistic

6. 1. GEOGRAPHIC SEGMENTATION – It tries to divide market
into different geographical units.
• Regions – By continent, country, state or even neighbors.
• Size of the area – Segmented according to size of population.
• Population density – Urban, suburban or urban.
• Climate – Weather patterns common to certain geographic
regions.
2. DEMOGRAPHIC SEGMENTATION –
• Age – Division on the basis of age groups of the target audience
is also one of the ways.
The products and marketing strategies for teenagers would
obviously be different than kids.
• Gender – The marketers divide the market into smaller segments
based on gender. Both men and women have different interests
and preferences.

7. • Income – Marketers divide the consumers into small segments as
per their income as Higher income group, middle income group
and lower income group.
• Social class – Social class influences their preferences for cars,
clothes, home furnishings and other products and services.
• Lifestyles – Marketers are increasingly interested in the effect of
consumer lifestyles on demand.
3. PSYCHOGRAPHIC SEGMENTATION - Psychographic
segmentation groups customers according to their lifestyles.
• Activities
• Interests
• Opinion
• Values

8. 4. BEHAVIORALISTIC SEGMENTATION - It is based on actual
customer behavior towards products. Some behavioralistic
variable include :-
• Opinions, interests and hobbies
• Degree of loyalty
• Occasions
• Benefits sought
• Usage
A. Opinions, interests and hobbies
- Include consumers political opinions, views on the
environment, sporting and recreational activities and arts and
cultural issues.
B. Degree of loyalty – Customers are variable to firms.
C. Occasions – When a product is purchased or consumed.

9. D. Benefits sought customers – Identify and understand the main
benefits consumers look for in a product.
E. Usage – Some can be segmented into light, medium and heavy
user groups.

10. THE END