Market segmentation involves dividing a market into homogeneous groups based on criteria like geography, demographics, psychographics, and behavior. It allows organizations to target desirable customer segments. Key criteria for segmentation include segments being measurable, accessible, large enough for profit potential, and stable over time. Common bases for consumer segmentation are geographic variables like region and climate, demographic factors like age, gender, and income, psychographic attributes like lifestyle and interests, and behavioral patterns like purchase occasions and loyalty. Effective segmentation allows customized marketing strategies for each group.

2. MARKETING SEGMENTATION
PRESENTED TO:- PORF. YOUSAF RAZA
Presented BY:- MUSHABA ALAM (0038)
USAMA AKHTAR (0032)

3. OUT LINES
 Market segmentations
 Criteria
 Advantages
 Requirement of market segmentation
 Bases of segmentation

4. MARKET SEGMENTATION
Market segmentation is the process
of dividing a market into several
relatively homogeneous groups. Both
profit-seeking and not-for-profit
organizations use segmentation to
help them reach desirable target
market.

5. CRITERIA FOR MARKET SEGMENTATION
Criterion
A segment must be measureable group.
 Data can be collected on the dollar amount and number of
purchases by college students.
A segment must be accessible for communication
A growing number of seniors are going online, so they can be
reached through internet channels.
A segment must be large enough to offer profit potential .
 In a small community, a store carrying only large-size shoes
might not be profitable.

7. REQUIREMENTS OF MARKET
SEGMENTS
1. Indefinable: the differentiating attributes of the
segments must be measurable so they can be
identified.
2. Accessible: the segments must be reachable through
communication and distribution channels.

8. REQUIREMENTS OF MARKET
SEGMENTS
 Unique needs: to justify separate offerings, the segments
must respond differently to different marketing mixes.
 Substantial: the segments should be sufficiently large to
justify the resources required to target them.

9. REQUIREMENTS OF MARKET
SEGMENTS
Durable: the segments should be relatively stable to
minimize the cost of frequent changes.

10. BASES FOR SEGMENTATION IN CONSUMER
MARKETS
 There are generally four segments
Geographic
Demographic
Psychographic
Behavioristic

11. GEOGRAPHIC
 One of the most basic forms of market
segmentation, Geographic segmentation divides
the market based on the units of geography.
 Such as:-
 Regions
 Size of the area
 Population density
 Climate

12. GEOGRAPHIC
 Region:- Region really matters and helps in
segmentations also. What type of culture and
traditions
over there etc.
 Size of Area:- This segmentation include that how
much population is present in that Area.

13. GEOGRAPHIC
 Population density:- Segments of areas according
to their population level. Like urban and rural have
different
population density.
 Climate:- This type of segmentation done by
keeping in mind the weather pattern of that
geographical region.

14. DEMOGRAPHIC
 Segmentation generally divides a population based on
variables. Each and every individual has an age, gender etc.
Demographic segmentation help divide a large population
into specific customer groups.
 The 5 main types of variables are as below
 Age
 Gender
 Income
 Religion, race and nationality

15. DEMOGRAPHIC
 Age:- One of the first variable of demographic segmentation
is age. This is because consumer needs and wants change
with their age.
 Example:- A child wants a cycle while on the other hand a
youngster prefers a bike.
 Gender:- Segmentation done by the gender like male, female.
 There are several products which are gender focused such as
deodorants, clothing, accessories, footwear and even
automobiles.

16. DEMOGRAPHIC
 Income:- We can make groups according to their
income. These customers are generally divided as
Sec, Sec B and Sec C customers depending on their
income and purchasing power.

17. DEMOGRAPHIC
 Religion, race and nationality:- Segmentation according
to nationality, religion and race.
 Example:- Coca cola or Pepsi. Although these two brands
have their own global advertising, but they also have specific
advertising in each country which they enter. The messages
of these advertisements are completely different and are
based on the local customs, religions as well as nationality.

18. PSYCHOGRAPHIC
 Psychographic segmentation is one which uses
peoples lifestyle, their activities, interests as well as
opinions to define a market segment.
Psychographic segmentation is quite similar to
behavioral segmentation.
 Life style
 Social class
 Personality
 Interest

19. PSYCHOGRAPHIC
 Lifestyle – There are various segments which have
become popular in retail but one of the most popular
segments is the lifestyle segment.
Everyone has different clothing
habits based on their lifestyle.
 Social class:- Different consumers fall in different social
classes. This depends mainly on their buying power. The
buying power is affected by the background of the
customer, his income
as well as his spending habits.

20. PSYCHOGRAPHIC
 Personality:- Personality in psychographic segmentation is
dependent on both – lifestyle as well as social class. A
person will have a rich personality only if he has high buying
power as well as the
taste in clothes to maintain
such a lifestyle.
 Interest:- Segmentation according to the interest of people
like some people like ISO and some
like ANDRIOD devices
according to their interest.

21. BEHAVIORISTIC
 Behavioral segmentation divides a population
based on their behavior, the way the population
respond to, use or know of a product. Consumer
decision making is affected by his behavior.
 Buying on occasions
 Benefits sought
 Loyalty
 Usage rate

22. BEHAVIORISTIC
 Buying on occasions:- Segmentation done when
different people buy different things on different
occasions.
 Example:- In Valentine people buy
more chocolates and
red roses than before.
 Benefits sought :- Several products are targeted
towards the benefits sought by the customer.
 Example:- There has been a war between Colgate and
Sensodyne to target the
people who have
sensitive teeth.

23. BEHAVIORISTIC
 Loyalty:- There are two ways to grow a business. First is
to acquire new customers and second is to retain your
existing customers. The more loyal your customer is to you,
the more your customer base will increase.
 Example:- Mostly hotels, restaurants, workshops etc.

24. BEHAVIORISTIC
 Usage rate:- In residential or commercial segment, the
usage can be demonstrated in the form of heavy usage,
moderate usage or lesser usage.
 Lets take the Example of beauty parlors or personal care.
There are some customers who use a lot of personal care
products whereas others do not use personal care products
much.
 So depending on their usage the customers can be
targeted.

25. THE END
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