Market segmentation involves dividing customers into groups based on common needs, priorities, and buying behaviors. This allows companies to develop targeted marketing strategies for each segment to create and expand the customer base. Effective segmentation results in groups that are measurable, substantial, accessible, and differentiated from each other so companies can tailor their approach. Overall strategies include undifferentiated, differentiated, and concentrated marketing.

3. Objectives of Market
Segmentation
To make grouping of customers.
To identify needs, tastes, priorities,
buying motives of the target consumers.
To determine marketing strategies,
targets and goal of the firm.
To make activities of the firm consumer
oriented.
To identify areas where customer may be
created and market area can be
expanded.

5. Minimize
aggregation
risk.
Help known
company’s
abilities.

6. Requisites of Effective
Segmentation
Measureable
and obtainable
Substantial
Accessible
Differential
Actionable
General
considerations
1.Growth potential
2.Profitable
3.Carries no
unusual risk

8. Market Segmentation
Strategies
Undifferentiated
marketing
Differentiated
marketing
Concentrated
marketing

10. Definition
• According to Philip Kotler, “Product
positioning is the act of designing the
company’s image and value offer so that the
segments customer understand and anticipate
what the company stands for in relation to its
competitive.”

11. Steps in Product
Positioning
Identify possible competitive
advantage.
Choosing the right
competitive advantage.
Signaling the competitive
advantage.

12. Factors Affecting Successful
Product Positioning
Designing creative product features.
Sizable and profitable
market segment.
Adequate information
about consumer
behavior.
Existence of
competition.