1. Unit V

2.  The process of defining and subdividing a
large homogenous market into clearly
identifiable segments having similar needs,
wants, or demand characteristics.
 Its objective is to design a marketing mix
that precisely matches the expectations of
customers in the targeted segment.

3. Geographic
Demographic
Age, gender,
family size and
life cycle, or income
Psychographic
Social class, lifestyle,
or personality
Time Based
Occasions, usage rate
Nations, states,
regions or cities

4.  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.

5.  Demographic variables
 age
 gender
 sexual orientation
 Marital status
 family size
 family life cycle
 education
 income
 occupation
 religion
 nationality/race
 language

6.  Needs – motivation
 Personality
 Perception
 Learning-
involvement
 Attitudes

7.  Usage rate
 Awareness status
 Brand loyalty
 Super heavy users,
heavy users, medium
users, etc
 Unaware, aware,
interested
 Some, none, strong

8.  Time
 Objective
 Location
 Person
 Leisure, work, morning
 Personal , gift, fun
 Home, work, in-store
 Self, family, peer, boss

9.  Psychographic
variables
 life style
• Economy minded, couch
potatoes, outdoors,
enthusiasts, status
seekers

10.  Benefit  Convenience, social acceptance,
long lasting, economy, value for
money