Marketing Segmentation In detail about marketing segmentation and different types of segmentation Different types of marketing segmentation with examples

1. BY
MANUPATI PUNITH
Market Segmentation

2. What is Market SegmentationWhat is 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. Three Phases of Marketing Strategy
Phase 1
Phase 2
Phase 3
Market Segmentation
Target Market and Marketing Mix Selection
Product/Brand Positioning

4. Customer Segmentation
High
Low
Consumption
High Current Share Low
LoLows
(starve)
HiHighs
(stroke)
LowHighs
(chase)
HiLows
(tickle)

5. Segmentation Studies
 Designed to discover the needs and wants of specific groups of
consumers in order to develop specialized products to satisfy specific
group needs
 Designed to guide the repositioning of a product
 Used to identify the most appropriate media for advertising

6. Bases for Segmentation
• Geographic Segmentation
• Demographic Segmentation
• Psychological Segmentation
• Psychographic Segmentation
• Sociocultural Segmentation
• Use-Related Segmentation
• Usage-Situation Segmentation
• Benefit Segmentation
• Hybrid Segmentation Approaches

7. Market Segmentation
Occupation
SEGMENTATION BASESEGMENTATION BASE SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLES
Geographic Segmentation
Climate
Density of area
City Size
Region Andhra, Karnataka, Gujarath
Major metropolitan areas, small cities, towns
Urban, suburban, exurban, rural
Temperate, hot, humid, rainy
Demographic Segmentation
Income
Marital status
Sex
Age Under 18,19-29, 30-49, 50-64, 65-74, 75-99, 100+
Male, female
Single, married, divorced, living together, widowed
Under INR 25,000, INR 25,000-INR
34,999, ...................................................................
Education Some high school, Graduate, postgraduate
Professional, blue-collar, white-collar, agricultural,
military

8. SEGMENTATION BASESEGMENTATION BASE SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLES
Psychological Segmentation
Learning-involvement
Perception
Personality
Needs-motivation Shelter, safety, security, affection, sense of self-worth
Extroverts, novelty seeker, aggressives, low dogmatics
Low-risk, moderate-risk, high-risk
Low-involvement, high-involvement
Psychographic
Subcultures (Race/ethnic)
Religion
Cultures
(Lifestyle) Segmentation Economy-minded, couch potatoes, outdoors enthusiasts,
status seekers
American, Italian, Chinese, Mexican, French, Pakistani
Catholic, Protestant, Jewish, Moslem, other
African-American, Caucasian, Asian, Hispanic
Family life cycle
Social class Lower, middle, upper
Bachelors, young married, full nesters, empty nesters
Attitudes Positive attitude, negative attitude
Sociocultural Segmentation
Market Segmentation

9. SEGMENTATION BASESEGMENTATION BASE SELECTED SEGMENTATION VARIABLESSELECTED SEGMENTATION VARIABLES
Use-Related Segmentation
Brand loyalty
Awareness status
Usage rate Heavy users, medium users, light users, non users
Unaware, aware, interested, enthusiastic
None, some, strong
Use-Situation Segmentation
Location
Objective
Time Leisure, work, rush, morning, night
Personal, gift, snack, fun, achievement
Home, work, friend’s home, in-store
Person Self, family members, friends, boss, peers
Benefit Segmentation Convenience, social acceptance, long lasting, economy,
value-for-the-money
Geodemographics “Money and Brains,” “Black Enterprise,” “Old Yankee
Rows,” “Downtown Dixie-Style”
Demographic/
Psychographics
Combination of demographic and psychographic profiles
of consumer segments profiles
SRI VALSTM
Actualizer, fulfilled, believer, achiever, striver,
experiencer, maker, struggler
Hybrid Segmentation
Market Segmentation

10. Geographic SegmentationGeographic Segmentation
The division of a total potential market into smaller subgroups on the
basis of geographic variables (e.g., region, state, or city).

11. Demographic Segmentation
• Age
• Sex
• Marital Status
• Income, Education, and Occupation

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

13. Psychographic Segmentation
•Sends and/or receives 15 or more e-mail
messages a week
•Regularly visits Web sites to gather
information and/or to comparison shop
•Often buys personal items via 800 numbers
and/or over the Internet
•May trade stocks and/or make travel
reservations over the Internet
•Earns $100,000 or more a year

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

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

16. Usage-Situation Segmentation
• 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.

17. Benefit Segmentation
• Segmenting on the basis of the most
important and meaningful benefit
–Prudential - financial security
–Iomega - data protection
–Wheaties - good health
–Eclipse - fresh breath

18. Hybrid Segmentation Approaches
• Psychographic-Demographic Profiles
• Geodemographic Segmentation
• SRI Consulting’s Values and Lifestyle
System (VALSTM
)

19. Mindbase Segmentation
MindBase Segmentation is an attitudinal
segmentation capability that can enhance
your understanding of – and engagement
with – those consumer groups most important
to your business.

20. BY
MANUPATI PUNITH