This document discusses market segmentation strategies. It defines segmentation as dividing a large market into smaller subgroups with similar characteristics. Key points made include: - Markets can be segmented by geography, demographics, psychographics, and behavior. - Segmentation allows companies to better understand customers and target specific groups. - The benefits of segmentation include increased sales, better customer satisfaction, and more efficient use of resources. - Industries like soap and watches segment based on location, lifestyle, age, gender, and income. Mass, niche, and local marketing are also discussed.

1. ITFTCOLLEGE–NEWCHANDIGARH
EducationwithEmploymentandEntrepreneurship
www.itft.edu.in
MARKET SEGMENTATION

2. What is Segmentation ?
Segmentation refers to a process of bifurcating or
dividing a large unit into various small units which
have more or less similar or related characteristics.
Process of
dividing
the
market
into sub
groups

3. • Market segmentation is a marketing concept
which divides the complete market set up into
smaller subsets comprising of consumers with a
similar taste, demand and preference.
• One market segment is totally distinct from the
other segment.
Market Segmentation

4. Segmentation Strategies

5. Segmentation Strategies
(A) geographical
differences

6. Some of the geographic Variables are:
a) Region : By continent , country, state .
b) Size Of Metropolitan Area :Segmented
according to size of population
c) Population Density; Urban , Rural ,semi
urban
d) Climate
Segmentation Strategies

7. (b) demographic
Segmentation Strategies

8. Some Demographic Variables:
a) Age
b) Gender
c) Family Size
d) Family Lifecycle
e) Generation
f) Income
g) Education
h) Occupation
i) Religion

9. Segmentation Strategies
(c) psychographic

10. Some psychographic variables
are :
a)Activities
b)Interests
c)Opinions
d)Attitudes
e)Values

11. (d) behavioral
Segmentation
Segmentation Strategies

12. • Based on actual
customer behavior
towards the product.
• Some variables are :
a) Benefits Sought
b) Usage Rate
c) Brand Loyalty
d) Readiness
e) Occasion

13. Why use Market Segmentation
• To gain greater
knowledge about
customers so that it can
vary the products

14. Why use Market Segmentation
• The information will
allow more sales to be
made

15. • Prevent promoting
product to wrong
people

16. • To target
particular groups
Why use Market Segmentation

18. Benefits of Segmentation
• Sales should increase
• Satisfy customer needs more
successfully
• customer feedback more easily
obtained
• reduced costs as money is not wasted
on ineffective advertising and
promotion.
• Better utilization of scarce resources.

19. LEVELS OF MARKET SEGMENTATION

20. Market segmentation in various industries
• SOAP INDUSTRY
 LAUNDRY SOAP.
 SPECIAL LAUNDRY SOAP.
 LOW GRADE TOILET SOAP.
 PREMIUM YOILET SOAP.
 TOILET SOAPS FOR STORES, OFFICES AND RESTAURANTS.
 INDUSTRIAL SOAP.
• WATCH INDUSTRY
 GEOGRAPHIC LOCATION OF CUSTOMERS.
 LIFE STYLE PATTERN.
 BASED ON AGE.
 BASED ON GENDER.
 BASED ON INCOME.

21. Market Segmentation

22. Mass Marketing
Mass marketing is the advertising or promotion of a
product, good or service to a wide variety of
audiences with the expectation of appealing to as
many people as possible.
Examples of Products which target a Mass Market –
Coke, Pepsi, General Motors (An automobile for all
ages), and many others.

23. A niche market is the subset of the market on which a
specific product is focused.
Market niche defines the specific product features
aimed at satisfying specific market needs, as well as
the price range, production quality and the
demographics that is intended to impact.
For example, sports channels like STAR
Sports, ESPN, STAR Cricket, and Fox Sports target a
niche of sports enthusiasts.
Niche Market

24. Local Marketing
Local marketing—also referred to as local store
marketing or neighborhood marketing—
specifically targets the community around a
physical store or restaurant.

25. BRAND POSITIONING
Brand positioning refers to the art and science of
fitting the product of service to one or more segments
of the broad market in such a way as to set it
meaningfully apart from the competition.

26. BASED ON SIZE

27. BASED ON TOUGHNESS AND
ENDURANCE

28. BASED ON LOW PRICE

29. BASED ON HIGH PRICE

30. BASED ON QUALITY

31. BASED ON TIME OF DAY

32. BASED ON SUBSTITUTION

33. BASED ON SEX OF THE CONSUMER

34. BASED ON AGE

35. BASED ON ATHLETIC APPROACH

36. BASED ON CULTURAL SYMBOLS