This Project has been developed by the student doing her Bachelor Of Business Administration.The student is Doing her graduation from Dezyne E' cole College. www.dezyneecolecollege.com

1. Sakshi Gupta
BBA 1st Year
Dezyne E’cole College, Ajmer
www.dezyneecole.com
Market Segmentation
By:

2. Market Segmentation
The process of dividing a
potential market into distinct
subsets of consumers and
selecting one or more
segments as a target market to
be reached with a distinct
marketing mix.

3. Phases of Marketing Strategy
1. Market Segmentation
2. Target Market and
Marketing Mix Selection
3. Product/Brand Positioning

4. Segmentation Studies Need
• Discover the needs and wants of groups of
consumers to develop specialized products to
satisfy group needs
• Used to identify the most appropriate media
for advertising

5. Bases of Segmentation
• Geographic
• Demographic
• Psychological
• Psychographic
• Sociocultural
• Use-Related
• Usage-Situation
• Benefit Sought
• Hybrid

6. 1. Geographic Segmentation
Region
Density of area
City Size
Climate
Southwest, Mountain States, Alaska, Hawaii
Major metropolitan areas, small cities,
towns
Urban, suburban, exurban, rural
Temperate, hot, humid, rainy

7. 2. Demographic Segmentation
Age Under 12, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+
Sex Male, female
Marital Status Single, married, divorced, living together, widowed
Income
Under $25,000, $25,000-$34,999, $35,000-$49,999, $50,000-
$74,999, $75,000-$99,999, $100,000 and over
Education Some high school, high school graduate, some college,
college graduate, postgraduate
Occupation Professional, blue-collar, white-collar, agricultural, military

8. 3. Psychological Segmentation
Needs motivation
Perception
Personality
Learning
Involvement
Shelter, safety, security, affection, sense of self-
worth
Extroverts, novelty seeker, aggressive, innovators
Low-risk, moderate-risk, high-risk
Low-involvement, high-involvement
Attitudes
Positive attitude, negative attitude

9. • Motivations
• Personality
• Perceptions
• Learning
• Attitudes
Psychological Segmentation

10. 4. Psychographic Segmentation
Economy-minded, couch
potatoes, outdoors enthusiasts,
status seekers
Lifestyle

11. Psychographic Segmentation
• Also known as Lifestyle Analysis
• Psychographic variables include attitudes,
interests, and opinions (AIOs)

12. 5. Sociocultural Segmentation
Cultures
Religions
American, Italian, Chinese, Mexican,
French, Pakistani
Catholic, Protestant, Jewish, Moslem, other
African American, Caucasian, Asian,
Hispanic
Lower, middle, upper
Bachelors, young married, full nesters,
empty nesters
Social Class
Family life Cycle
Subcultures

13. Sociocultural Segmentation
• Family Life Cycle
• Social Class
• Culture, Subculture, and Cross-Culture

14. 6. Use-Related Segmentation
Usage Rate
Brand Loyalty
Awareness Status
Heavy users, medium users, light users, non
users
Unaware, aware, interested, enthusiastic
None, some, strong

15. Use-Related Segmentation
• Rate of Usage
– Heavy vs. Light
• Awareness Status
– Aware vs. Unaware
• Brand Loyalty
– Brand Loyal vs. Brand Switchers

16. 7. Use- Situation Segmentation
Time
Location
Objective
Person
Leisure, work, rush, morning, night
Personal, gift, snack, fun, achievement
Home, work, friend’s home, in-store
Self, family members, friends, boss, peers
Benefit
Convenience, social acceptance, long
lasting, economy, value-for-the-money

17. • Segmenting on the basis of special occasions or situations
• Example Statements:
– Whenever our daughter Jamie gets a raise, we always take her
out to dinner.
– When I’m away on business, I try to stay at a suites hotel.
– I always buy my wife flowers on Valentine’s Day.
Usage-Situation Segmentation

18. 8. Benefit Segmentation
• Convenience
• Social acceptance
• Long lasting
• Economy
• Value-for-the-money

19. 9. Hybrid Segmentation
Demographic/
Psychographics
Convenience, social acceptance, long
lasting, economy, value-for-the-money
PRIZM NE
Geodemographics
“Movers & Shakers,” “New Empty Nests,”
“Boomtown Singles,” “Bedrock America”
SRI VALS
Innovators, Thinkers, Believer, Achievers,
Strivers, Experiencer, Makers, Survivors

20. Hybrid Segmentation Approaches
• Psychographic-Demographic Profiles
• Geodemographic Segmentation
• SRI Consulting’s VALS

21. VALS Framework

22. Criteria for Effective Targeting of
Market Segments
• Identification
• Sufficiency
• Stability
• Accessibility

23. Implementing Segmentation
Strategies
• Concentrated Marketing
One segment
• Differentiated
Several segments with individual marketing mixes

24. Thank You
By
Sakshi Gupta
BBA 1yr.
Dezyne E’cole College
www.dezyneecole.com