Market segmentation involves dividing the market into subgroups with distinct needs or characteristics. The benefits of market segmentation include: 1) Better understanding customer needs to improve competitive position and increase sales. 2) Facilitating the selection of a target market and effective marketing to chosen segments. 3) Identifying less satisfied segments to concentrate marketing efforts. 4) Focusing efforts on the most productive and profitable market segments.

1. BENEFITS OF MARKET
SEGMENTATION
Gautam S Rashingkar

2. Market Segmentation
● Dividing a market into smaller groups of
consumers or organisations in which each
consumer has a common characteristic
such as a need or a want.
● It involves building up or breaking down of
potential buyers into groups called market
segments.
● By doing so the marketers will have a
better understanding of their target
audience and thereby make their
marketing more effective

3. 1. Geographic Segmentation
2. Demographic segmentation
3. Income segmentation
4. Behavioral segmentation
5. Psychographic
segmentation
BASIS OF MARKET SEGMENTATION

4. Benefits Of Market
Segmentation
OBJECTIVES:
● Better serve the needs of the customers.
● Improve company’s competitive position.
● Increase sales, improved market-share, enhanced image.
1. Facilitates the right choice of Target market:
It helps the marketer to identify potential buyers and pickup their target
market effectively.
2. Facilitates effective tapping of the Chosen market segment:
It helps to know and analyse the demands of each customer group
and make offers that match them.

5. Toyota India

6. 3. Helps identify less satisfied segments and
concentrate on them:
● Segmentation also helps the
marketers to know the segment
still waitingto be served and
grabs them as a unique
opportunity.
4. Helps to concentrate efforts on most
productive and profitable market segment
instead of frittering over irrevelant,
unproductive /unprofitable segment.

7. 5. FOCUS OF THE COMPANY
● Segmentation is an effective method to increase the focus of
a firm on market segments.
● This helps a company in changing its focus for better returns.
● Thus companies base their strategy completely on a new
segment which increases its focus and profitability.
e.g. Automobile companies have started focusing on small car
segments.

8. 6.CUSTOMER RETENTION
Segmentation ensures customer
retention.
e.g. Titan watches.
● A watch is available for any
customer who enters a Titan
showroom, whatever be his age,
budget.
● from fast track to Sonata and the
high end
watches(EDGE,HTSE,PURPLE,etc)
Titan has them by price segment as well
as life cycle segment.

9. 7. MARKET EXPANSION
● Segmentation plays a crucial role in
expansion.
● One cannot expand in a territory without
any idea of which segment of customers
one will be dealing with.
● e.g Reebok targets fitness enthusiasts,
it has expanded into clothes and
accessories from being a shoe
manufacturer.

10. 8. INCREASE PROFITABILITY
● It affects the profitability of the firm.
e.g. Nike, BMW showrooms.
● One of the USP’s of these brands is their segmentation. i.e
they target segments which donot bargain or negotiate.Thus
their profitability is high.
9. BETTER COMMUNICATION
● Communication cannot be possible without knowing target
market.
● By limiting the audience, one can choose magazines,
websites, radio and TV stations, events that those customers
are more likely to hear, see, visit or attend.
● This makes the marketing effort more economic and efficient.

11. THANK YOU!!!